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Doa    No.  71.] 


[Ses.   1853-'9. 


Ordered  to  oe  Printed. 


Ilolden  &  Wilson,  Printers  to  the  State. 


<T> 


REPORT  OF  THE  JOINT  'SELECT   COMMITTEE  ON 
•     THE  NORTH  CAROLINA  RAILROAD. 

The  joint  select  committee  on  the  general  management  and 
financial  condition  and  prospects  of  the  North  Carolina  Rail- 
road Company  direct  the  undersigned  to  submit  the  following 
report  as  the  result  of  their  investigations. 

From  the  nature  of  the  inquiry  as  well  as  from  the  terms 
of  the  resolution  under  which  your  committee  was  appointed,, 
they  deemed  it  inexpedient  to  attempt  to  examine  into  details,, 
except  so  far  as  to  form  some  idea  of  the  general  management,, 
since  it  was  obvious  that  this  would  require  more  time  than  they 
could  bestow  on  on  it,  even  if  they  had  devoted  to  it  the' 
whole  of  the  session,  to  the  neglect  of  all  their  other  duties. 

Yery  soon  after  the  announcement  of  the  committee,  they 
received  the  annexed  letter  from  Gov.  Bragg,  (marked  No.  1), 
inclosing  the  annexed  letter,  dated  December  8th,  from  Chas.. 
F.  Fisher,  Esq.,  President  of  the  Road,  (marked  No.  2.)  In 
consideration  of  these  communications  they  resolved  to  ©ive 
Mr.  Fisher  time  to  make  read}7-  the  report  to  which  he  refer- 
red. Hearing  nothing  further  from  him.,  they  addressed  to- 
him  a  letter,  dated  December  IS,  1858,  requesting  him  to  at- 
tend them  on  the  4th  of  January,  with  his.  treasurer,  book- 
keeper, books,  &c,  a  copy  of  which,  (No.  3)  with  Mr.  Fisher's 
reply,  dated  December  22d,  1858,  is  hereto  annexed. 

At  the  time  appointed,  Mr.  Fisher,  Cyrus  P.  Mendenhall, 


^  the  treasurer,  andR.  W.  Mills,  the  book-keeper,  attended,  with 
u*.  the  books  and  papers.  The  committee  took  into  their  possession 


2  Document  No.  71.  [Session 

the  journal  of  the  directors  and  sundry  papers  which  they 
deemed  pertinent  to  their  inquiry, — sat  from  evening  to  eve- 
ning, and  left  with  the  book-keeper  and  treasurer  sundry  in- 
quiries to  be  answered  at  subsequent  sittings  ;  and,  in  the  lat- 
ter part  of  that  week,  consented  that  the  treasurer  and  book- 
keeper might  go  home,  to  be  back  again  on  the  Monday  fol- 
lowing. Mr.  Fisher,  on  the  4th  January,  informed  us  that  his 
presence  on  the  road,  at  the  beginning  of  the  year,  when  the 
new  hands  had  to  be  distributed,  was  highly  necessary,  and 
the  committee  consented  that  he  attend  to  the  duties  on  the 
road,  he  agreeing  to  return  whenever  he  should  be  notified 
that  his  presence  was  desired  by  us. 

On  Monday,  the  8th  of  January,  Mr.  Mendenhall  returned, 
but  Mr.  Mills,  who  had  taken  away,  without  consulting  us,, 
certain  books  containing  matters  which  we  were  investiga- 
ting, did  not  return,  and  he  remained  away  all  that  week, 
with  the  books  he  had  taken  with  him.  On  Saturday,  your 
chairman  saw  Mr.  Fisher  and  informed  him  that  their  pro- 
ceedings were  arrested  for  want  of  the  books  which  the  book- 
keeper had  taken  away.  Under  the  orders  of  the  committee, 
on  Saturday  night,  the  chairman  addressed  to  Mr.  Fisher  a 
letter,  of  which  the  following  is  a  copy  : 

Raleigh,  January  15th,  1859. 
Me.  Chas.  Fisher — 

Dear  Sir  : — The  committee  investigating  the  affairs  of  the 
N.  C.  R.  R,  Company,  instruct  me  to  say  to  you  that  they 
have  been  arrested  in  the  discharge  of  their  duty  all  the 
week,  by  the  non-attendance  of  your  book-keeper,  who  should 
have  been  here  all  the  week  with  his  books,  according  to  the 
orders  of  this  committee. 

The  committee  require  that  your  book-keeper,  with  hi3 
books,  attend  this  committee  without  delay  ;  and  also  that  the 
person  having  charge  of  your  shop  books,  attend  with  his 
books,  by  4  o'clock  P.  M.,  on  Tuesday  next. 

The  committee  also  instruct  me  to  ask  for  your  personal  at- 
tendance before  them  by  4  P.  M.,  on  Wednesday  next. 
Tours  respectfully, 

J.WORTH,  Ch'mn. 


1858-'9.]  Document  No.  71.  3 

On  Sunday  morning,  Mr.  "West,  the  station  agent  at  Ra- 
leigh, called  on  the  chairman,  with  a  note  from  Mr.  Mills, 
the  book-keeper,  stating  that  Mr.  Fisher  desired  him  to  get 
the  journal  of  the  Directors  from  the  office,  or  of  any  mem- 
ber of  the  committee  who  might  have  it,  and  send  it  to  Sal- 
isbury— whereupon  the  following  postscript  was  added  : 

"  Sunday,  January  16th,  1859. 
Mr.  "West  has  presented  to  me  your  secretary's  note,  asking 
for  the  book  containing  the  proceedings  of  the  directory.     I 
decline  to  send  it.  J.  WORTH." 

On  Monday  the  book-keeper  attended,  and  explained  that 
he  had  been  engaged  in  supplying  Mr.  Fisher  with  materials 
for  a  report  he  was  having  printed  in  Salisbury. 

On  Tuesday  the  master  machinist  attended  with  his  books, 
and  answered  promptly  all  questions  propounded  to  him.  Mr. 
Fisher  did  not  attend  on  Wednesday,  and  has  made  no  reply 
to  the  foregoing  letter,  which  has  been  read  to  the  committee 
and  unanimously  approved  by  them. 

Your  committee  have  not  exercised  the  power  conferred 
on  them  to  send  for  persons  and  papers  and  examine  them  on 
oath,  because  thej>  found  that  the  short  time  remaining,  would 
not  permit  a  thorough  investigation,  and  that  many  matters 
which  they  deem  important  could  be  fully  examined  without 
resorting  to  this  course. 

The  following  are  the  results  of  the  imperfect  inquiry  they 
have  been  able  to  make  under  the  foregoing  circumstances. 
On  the  19th  December,  1854,  we  find  on  the  journal  of 
the  Directors,  the  following  resolution.     Present : 

John  M.  Morehead,  R.  M.  Saunders, 

F.  Fries,  John  Berry, 

Robert  Strange,  W.  T.  Dortch, 

George   Stephenson,  Caleb  Phifer, 

Samuel   Hargrave,  ( 'harles  F.  Fisher. 

K  G.  Rand, 
"  On  motion,  ordered  that  the  settlement  of  the  contract 
with  John  0.  McRae  &  Co.,  bo  referred  to  R.  M.  Saunders, 


4r  Document  ISTo.  71.  [Session 

K.  Q.  Rand,  W.  T.  Dortch  and  Charles  F.  Fisher,  with  full 
power  to  settle  and  adjust  the  same." 

"  At  the  request  of  John  0.  McRae  &  Co.,  the  board  agree 
to  finish  the  remainder  of  the  first  division,  for  which  said 
McRae  tfeCo.,  are  to  account  on  the  settlement  above,  accord- 
ing to  the  estimate  of  the  engineer." 

At  the  same  time  the  board  order  the  sum  of  $4000,  to  be 
paid  to  said  McRae  &  Co.,  as  soon  as  the  treasury  would  ad- 
mit, "  in  advance  of  the  final  settlement." 

Your  committee  regarded  this  resolution,  by  which  was 
transferred  to  a  committee  of  the  Directory,  a  duty  which 
could  be  intelligently  performed  by  the  engineer  only,  as  pre- 
senting a  question  worthy  of  investigation.  They  called  for 
the  contract  between  the  said  McRae  &  Co.,  and  the  report  of 
the  committee  appointed  to  settle  with  them.  Mr.  Fisher 
stated  that  soon  after  the  cars  on  this  division,  built  by  John 
C.  McRae  &  Co.,  began  to  run,  in  consequence  of  a  culvert 
defectively  built,  a  freshet  produced  in  the  road  a  breach,  in- 
to which  a  freight  train  fell,  destroying  two  lives,  and  doing 
much  damage  to  the  engine  and  cars;  and  that  it  was  found 
necessary  to  reconstruct  many  of  them.  In  his  report  of  July 
7th,  1857,  he  sets. down,  among  work  done  by  him,  ten  cul- 
verts on  eastern  division,  reconstructed.  Whether  others 
were  afterwards  reconstructed,  your  committee  are  not  in- 
formed. 

We  were  aware  of  the  high  reputation  of  Col.  Gwynn.  as 
an  engineer,  and  that  every  administration  of  the  road  had 
emphatically  expressed  their  high  appreciation  of  the  services 
he  had  rendered  the  company,  and  as  we  shall  have  frequent 
occasion  to  refer  to  his  professional  opinions  we  would  here 
call  attention  to  the  resolution  of  the  board,  passed  on  the 
10th  January,  1856,  at  the  time  he  tendered  his  resigna- 
tion, as  chief  engineer,  declaring  that  "the  thanks  of  the 
board  being  due,  are  hereby  cordially  tendered  to  him  for  his 
able,  efficient  and  faithful  services  as  chief  engineer  of  the 
North-Carolina  Railroad  Company,  and  that  ho  be  tendered 
for  himself  and  family,  a  free  passage  for  life  over  the  road." 
We  resolved  to  ascertain  whether  this  defective  work  was 


185S-'9.]  Document  No.  71.  5 

approved  by  the  engineer,  who  was  the  proper  officer  to  judge 
of  its  sufficiency,  or  any  subordinate  of  his,  having  the  work 
under  his  immediate  charge.  We  addressed  a  letter  to  Col. 
Gwynn  and  also  to  Mr.  James  Miller,  chief  assistant  engineer, 
asking  them  to  inform  us  whether  they  or  either  of  them 
made  any  report  as  to  the  sufficiency  or  insufficiency  of  the 
work — and  if  they  did  not  report  on  it,  why  they  did  not — 
and  whether  the  committee  appointed  to  make  this  settle- 
ment, consulted  them  as  to  the  character  of  the  work  ?  The 
answer  of  Mr.  Miller,  No.  4,  and  the  answer  of  Col.  Gwynn 
No.  5,  are  hereto  annexed,  from  which  it  will  be  seen  that 
neither  of  them  v:as  consulted  hy  the  committee — and  Col. 
Gwynn  says  he  disapproved  of  much  of  the  work  done  by 
Jno.  C.  McRae  &  Co.  on  the  North  Carolina  Railroad.  The 
masonry  of  the  bridge  over  the  Neuse  and  the  culverts  were 
badly  built.     We  call  special  attention  to  these  letters. 

We  endeavored  to  ascertain  the  amount  of  damage  sustain- 
ed by  the  company  by  the  falling  in  of  the  freight  train — 
and  the  cost  of  re-constructing  the  defective  culverts,  but 
could  get  no  information  approximating  certainty.  It  cer- 
tainly amounted  to  a  large  sum. 

These  contractors  undertook  to  build  the  first  division  of 
the  road  from  its  eastern  terminus,  the  point  of  connection 
with  the  Wilmington  and  Raleigh  road,  to  the  eastern  ter- 
minus of  the  2nd  division,  about  six  miles  west  of  Raleigh, 
furnishing  the  iron  rails,  and  every  other  species  of  material 
and  doing  all  the  work.  They  were  to  provide  the  road 
"  with  all  and  every  fixture,  and  work  that  may,  in  the  judg- 
ment of  the  chief  engineer,  be  required  for  the  speedy  and 
safe  transit  of  locomotives  with  their  trains  :  all  materials  and 
all  work  to  be  subject  to  the  inspection  of  the  chief  engineer 
or  some  one  appointed  by  him."  The  contract  sets  out  at 
great  length  and  with  great  minuteness,  the  weight  and  quali- 
ty of  the  rails,  brick  and  other  material  to  be  used  and  the 
manner  in  which  every  species  of  work  is  to  be  done.  They 
stipulate  to  complete  the  work  by  the  1st  January,  1854 — and 
that  "  the  time  herein  stated  shall  be  considered  as  of  the  es- 
sence of  the  agreement." 


6  Document  No.  71.  [Session 

The  rail  road  company  stipulate  to  pay  the  contractors 
$628,952,  from  which  was  to  be  deducted  the  final  estimates 
of  certain  contracts,  theretofore  taken  for  a  part  of  the  work 
on  the  first  division,  and  all  cost  of  engineering  and  superin- 
tendence on  this  division,  and  one  fourth  of  the  salary  of  the 
chief  engineer,  and  one  fourth  of  the  expenses  of  the  general 
administration  of  the  company :  they  were  to  take  off  the 
hands  of  certain  subscribers  to  the  stock  of  the  company  885 
shares  of  stock  and  the  balance  was  to  be  paid  in  money,  the 
rail  road  company  reserving  one-fifth  of  the  bi-monthly  esti- 
mates until  the  said  McRae  &  Co.,  should  complete  their  un- 
dertaking. We  find  in  the  contract  the  following  clause : 
"  the  chief  engineer  shall  in  all  cases,  decide  every  question 
which  can  or  may  arise  relative  to  the  execution  of  this  con- 
tract on  the  part  of  said  contractor,  and  his  decision  shall  be 
final  and  conclusive." 

We  find  that  on  the  1st  April  1852,  the  board  of  directors 
"  resolved  that  in  all  future  estimates,  made  on  the  work  of 
John  C.  McRae  &  Co.,  on  the  first  division  of  the  North 
Carolina  Rail  Road  only  10  per  cent,  be  reserved  instead  of 
20  per  cent. " 

On  the  9th  December  1852,  the  subscription  of  $2,000,000 
to  the  stock  of  the  company  was  made  by  Governor  Reid  in 
behalf  of  the  State. 

On  the  2nd  of  April  1 853,  time  is  given  to  McRae  &  Co., 
till  1st  April  1854,  to  finish  their  contract. 

On  the  15th  July,  1853,  the  State  directors  take  their  seat  in 
the  board  of  directors,  many  ballotings  are  had  for  president, 
which  resulted  in  the  election  of  John  M.  Morehead. 

On  the  16th  July  1853,  the  directors  "  resolved  that  the 
company  authorize  Col.  Walter  Gwynn  to  make  a  contract 
with  John  C.  McRae  &  Co.,  to  furnish  said  John  C.  McRae 
&  Co.,  with  a  locomotive  and  freight  train  upon  such  terms 
and  conditions  as  he  may  deem  expedient  for  the  speedy  com- 
pletion of  the  first  division  of  the  North-Carolina  Railroad." 

On  the  3d  August  1853,  the  directors  order  the  president 
to  pay  said  contractors  $10,000  "  as  an  advance  payment  on 
their  estimates  to  be  made  after  the  first  day  of  September.  " 


IS 58-  9.]  Document  No.  71.  7 

On  the  31st  August  1S53,  on  the  representations  of  the 
chief  engineer  that  the   force  employed   was  inadeq  o 

finish  this  contract  by  the  first  April  following,  the  board 
request  these  contractors  to  increase  their  force  to  a  sufficient; 
extent  to  insure  the  completion  of  their  work  by  the  first 
April  following. 

On  the  13th  April  1S51,  the  board  ordered  an  advance  pay- 
ment of  $8000  to  be  made  to  the  said  John  C.  McRae  &  Co. 

On  the  15th  of  July,  1854,  the  board  of  directors  ordered 
"that  John  C.  McRae  &  Co.,  be  notified  to  have  the  Road 
from  Goldsboro'  to  ^fallings'  station,  and  the  arm  to  Wa;  3- 
boro',  finished  and  ready  for  the  use  of  the  compau}',  accord- 
ing to  the  orders  heretofore  issued  to  said  contractors  by  the 
chief  engineer,  on  the  1st  day  of  September  next;  and  in  case 
they  should  fail  to  comply  with  the  requirements  of  this  no- 
tice, the  chief  engineer  is  instructed  to  employ  the  uecessary 
force  to  execute  said  work  and  charge  the  same  to  the  said 
John  C.  McRae  &  Co.,  according  to  the  terms  of  the  con  it 
with  the  said  firm." 

In  pursuance  of  this  order,  the  engineer  employed  hands  and 
expendad  on  this  contract,  as  per  account  on  tile,  $6, 553. 22* 

In  consequence  of  the  delay  of  these  contractors  in  comple-1 
ting  their  undertaking,  Governor  Morehead,  the  then  presi- 
dent of  the  road,  entered  into  a  contract  with  them,  by  which 
it  was  agreed  that  the  rail  road  company  was  to  furnish  the 
material  and  lay  the  track  from  the  Raleigh  station  to  the 
western  end  of  the  first  division,  at  $0,4-00  per  mile,  the  ori- 
ginal estimate  of  the  engineers,  to  he  retained  out  of  the  j? rice 
agreed  to  he  paid  to  McRae  &  Co,,  they  having  liberty,  when 
they  finished  the  road  to  Raleigh,  to  turn  over  to  the  railroad 
company,  all  the  rails,  chairs,  spikes  and  sills,  they  might  have 
remaining  on  hand,  to  be  allowed  the  prices  originally  esti- 
mated by  the  engineer  for  the  same  ;  and  for  any  deficiency 
of  such  materials,  thus  turned  over,  to  complete  that  end  of 
the  road,  the  said  McRae  &  Co.  were  to  pay  the  actual  cost, 
which  was,  $4105.71. 

The  following  is  a  copy  of  the  report  of  the  committee  of 
directors  appointed  to  settle  with  the  said  John  C.  McRae  &  Co# 


8  Document  No.  71.  [Session 

"  In  examining  the  general  account,  as  exhibited  to  us,  be- 
tween John  C.  McRae  &  Co.,  and  the  North  Carolina  Kail 
Road  Company,  we  agree  to  allow  deducting,  as  credit,  on 
the  following  items  ;  to-wit :  the  item  for  completing  the  road 
below  Stallings',  one  half,  $3,276.61.  The  item  as  to  excess  of 
iron,  &c.j  he  is  to  be  credited  with  $1353.50.  In  the  item  as 
to  turnout  at  Raleigh  station,  he  is  to  be  credited  with  $1835.- 
95.  The  account  will  be  reformed  accordingly. 

R.  M.  SAUNDERS, 
N.  G.  RAND, 
CHAS.  F.  FISHER, 
WM.  T.DORTCH." 

By  this  settlement  you  will  see  that  Jno.  C.  McRae  &  Co. 
are  allowed,  over  and  besides  what  they  would  have  leen  en- 
titled to  receive,  if  they  had  completed  their  worlt,  accordiny  to 
contract,  as  follows : 

Half  the  amount  expended  by  the  Company   for 

work  done  below  Stallings', $3,276  61 

Item  as  to  excess'of  iron, 1 ,353  50 

Item  as  to  turnout  at  Raleigh, 1 ,835  95 


$6,466  06 
And  the  said  committee   further  remitted   to  the 
said  McRae  &  Co.  interest  on  stock  to  be  re- 
funded,          177  00 


Total  amount  of  extra  allowance, $6,643  06 

When  it  is  considered  that  great  indulgence  had  uniformly 
been  extended  to  these  contractors  from  the  beginning,  by  a 
reduction  of  the  20  per  cent,  to  have  been  retained  as  a  secu- 
rity for  the  performance  of  their  contract,  to  10  per  cent.;  by 
the  endorsement  of  the  Rail  Road  Company  to  enable  them 
to  buy  iron  ;  by  repeated  extensions  of  time  to  complete  their 
contract ;  by  large  payments  in  advance  of  estimates ;  when 
it  is  seen  that  the  engineer,  who,  by  the  terms  of  the  contract, 


1858-'9.]  Document  No.  71.  9 

was  to  have  been  the  judge  of  the  sufficiency  of  the  work  and 
who  was  alone  competent  to  discharge  this  duty  with  discre- 
tion, disapproved  this  work,  and  that  his  disapproval  was 
known  to  the  Directors :  when,  under  these  circumstances, 
the  Directors  appoint  four  of  their  body  a  committee  with 
powers  to  approve,  and  receive,  and  order  payment  fur  the 
work  : — when  it  is  seen  that  this  settling  committee  actuall}' 
allow  these  contractors  $6643  06  more  than  they  would  have 
been  entitled  to  receive,  if  they  had  executed  their  contract 
faithfully  :  when  it  is  considered  that  this  work  proved  to  be 
defective  as  the  Engineer  had  said  it  was,  whereby  the  Com- 
pany had  soon  afterwards  to  re-constrnct  a  considerable  portion 
of  it,  and  whereby  much  damage  was  done  and  two  lives  lost; 
when  it  is  considered  that  these  contractors  could  cast,  in  a 
meeting  of  stockholders  SS5  votes  ;  and  that  no  other  contrac- 
tor on  the  Road  had  his  contract  received  and  paid  for  until 
it  received  the  approval  of  the  Engineer,  your  committee 
conceive  that  the  facts  are  furnished  from  which  you  can 
draw  the  proper  conclusion. 

Your  committee  attempted  to  inquire  into  the  question, 
under  which  administration  of  the  road  was  purchased  the 
excessive  quantity  of  wood  referred  to  in  the  6th  page  of  Mr, 
Fisher's  report  of  July,  1S57.  In  this  report  lie  sets  forth 
that  there  is  then  on  hand  wood,  of  the  value  of  $47,363  01, 
which  he  represents  as  enough  for  a  longer  term  than  three 
or  four  j'ears.  He  says,  in  this  report,  "  this  large  surplusage 
of  wood  is  on  the  eastern  end,  and  was  delivered  under  con- 
tracts made  before  my  term  of  office,  under  the  direction  of 
the  engineers  in  charge,  which  contracts  could  not  be  rescind- 
ed or  delayed.  It  has  been  a  very  troublesome  item  of  cost." 
At  the  date  of  this  report  Mr.  Fisher  had  been  in  office  two 
years  as  president.  If,  after  using  off  this  wood  for  two  years, 
there  was  still  on  hand  a  surplus  more  than  sufficient  for  three 
or  four  years,  it  was  obvious  that  the  former  administration, 
under  which  these  contracts  were  said  to  have  been  made, 
was  highly  reprehensible  ;  not  only  on  account  of  the  large 
amount  of  money  involved,  but  because  the  wo  »d  must  be 
greatly  damaged  by  decay,  before  it  could  be  used  and  was 
liable  to  be  destroyed  by  fire. 


10  Document  No.  71.  [Session 

We  called  for  the  written  contracts  under  which  this  wood 
was  furnished  with  the  view  of  seeing  who  had  committed 
this  error. 

We  annex  to  this  report  a  tabular  statement,  made  from 
these  contracts,  showing  the  date  of  each  contract — the  quan- 
tity of  wood  contracted  for — -and  the  time  when  deliverable, 
marked  No.  6. 

From  these  it  will  be  seen  that  Gov.  Morehead  contracted 
on  the  20th  February,  1853,  for  1500  cords  of  wood,  deliver- 
able in  six,  nine  and  twelve  months  ;  one-third  at  each  period, 
and  1000  cords,  all  deliverable  on  the  western  end  of  the 
road,  in  all  2500  cords ;  and  contracts  were  made  for  wood, 
deliverable  on  the  eastern  end  of  the  road,  after  Mr.  Fisher's 
term  of  office  commenced,  (to-wit,  July  13th,  1855,)  to  the 
amount  of  41012^  cords,  at  a  cost  of  $51,265.  All  these 
contracts  were  made,  as  will  be  seen  by  reference  to  said 
table,  in  November  and  December,  1856,  and  in  January, 
February  and  March,  1857,  and  3600  cords  of  it  were  deliv- 
erable in  the  months  of  January  and  February,  1857.  The 
contracts  for  the  western  end  of  the  road,  excepting  the  two 
contracts  made  by  Gov.  Morehead,  are  not  on  file  in  the  office 
of  the  treasurer  and  book-keeper,  as  they  informed  us. 

A  member  of  the  committee  called  our  attention  to  alledg- 
ed  mismanagement  in  acquiring  the  right  of  way  over  a  por- 
tion of  certain  lots  in  the  town  of  Raleigh,  owned  by  Wm. 
N.  Andrews.  We  called  on  Mr.  Mendenhall  for  information, 
who  stated  that  Gov.  Morehead  had  taken  a  deed  from  An- 
drews for  the  right  of  way,  and  found  it  referred  to  in  his  in- 
dex, by  its  number,  but  the  deed  was  not  there.  His  recol- 
lection of  it  is,  that  Mr.  Fisher  had  it  in  his  possession  the 
last  time  he  saw  it.  We  examined  the  Register's  office.  No 
such  deed  was  registered.  We  found  Andrews'  receipt  given 
to  Gov.  Morehead,  dated  May  15th,  1852,  for  $275  for  right 
of  way.  It  does  not  describe  the  lot,  nor  quantity  granted, 
which  was  probably  described  accurately  in  the  deed.  We 
cited  Andrews  to  appear  before  us  and  bring  his  deeds.  He 
appeared,  and  stated  that  he  had  signed  some  papers  to  Gov. 
Morehead,  granting  the  right  of  way  as  to  lot  No.  45,  in  the 


1858-9.]  Document  No.  71.  11 

plat  of  the  city.  He  produced  a  deed  from  Wm.  II .  Jones, 
dated  Feb.  22d,  1853,  conveying  to  him  lot  No.  24,  contain- 
ing one  acre — consideration,  $250.  The  deed  also  recites  that 
for  this  consideration,  Jones  grants  to  him  his  (Jones's)  right 
to  damages,  if  he  had  any  rights,  from  the  North-Carolina 
railroad  for  right  of  way.  Andrews  stated  that  Eldridge 
Smith,  Wm.  II.  Tucker  and  Ed.  Yarborough,  Jr.,  assessed  the 
damages  as  to  this  lot  ;  that  Mr.  Fisher  had  paid  him  $460 
as  well  as  he  could  recollect.  He  thought  there  was  still  due 
him  about  $140.  He  said  he  had  executed  no  deed  for  the 
right  of  way  over  this  lot,  and  did  not  intend  to  execute  one 
until  the  balance  due  him  was  paid. 

The  treasurer  showed  us  two  warrants  from  Mr.  Fisher,  un- 
der which  he  had  paid  Andrews  for  right  of  way,  $760.  One 
of  these  warrants  for  $200,  is  dated  November  22d,  1855; 
the  other,  for  $560,  is  dated  December  19th,  1855,  which  re- 
cites that  it  is  in  part.  We  found  no  reference,  or  award,  or 
deed. 

We  find  on  the  journal  of  the  directors,  July  8th,  1852, 
the  following : 

"  Gen.  Benjamin  Trolinger  having  submitted  a  proposition 
to  the  board  relative  to  some  alteration  and  improvement  of 
road  and  bridge  at  Haw  river,  the  following  was  passed  after 
some  discussion  : 

"  JResolved,  That  Benjamin  Trolinger  be  allowed  to  execute 
the  work  at  the  Haw  river  bridge,  and  the  sections  adjoining 
it  on  each  side,  in  such  manner  that  the  level  of  the  bridge 
shall  be  two  and  nine-tenths  feet  higher  than  it  is  now  design- 
ed to  be,  extending  each  way  from  the  bridge,  on  the  west 
side  400  feet,  and  on  the  east  side  700  feet— thence  the  grade 
of  the  railroad  to  ascend  eastward  parallel  with  the  present 
grade  and  two  feet  and  nine-tenths  below  it,  until  it  reaches 
the  summit  level  between  Haw  river  and  Back  creek.  The 
additional  work  required  in  making  this  to  be  executed  with- 
out charge  to  the  North  Carolina  Railroad  Company." 

On  the  10th  of  April,  1857,  we  find  the  following  entries 
on  the  journal  of  the  directors: 

"  Ordered,  that  the  president  make  a  settlement  with  Gen. 


12  Document  No.  71.  [Session 

Trollinger  on  the  terms  and  conditions  proposed  by  him  at 
this  date,  which  it  is  understood  is  a  final  one  of  all  claims  on 
his  part." 

The  following  is  a  copy  of  the  proposition  referred  to  in 
the  foregoing  resolution. 

"  To  the  President  &  Dieectoes  of  the  N.  C.  It.  E. — 

"  Gentlemen : — In  order  to  get  a  level  at  this  place,  I  sunk 
the  grade  for  about  one  mile  at  the  cost  of  about  (2^  feet 

lower)  $1,000 

and  raised  the  bridge  at  a  cost,  by  engineer's  estimate, 

of  .  684 

and  incurred  the  expense  of  conveying  the  water  to 

this  place,  at  a  cost  of  628 

and  built  a  water  station  and  furnished  the  material, 

at  a  cost  of  about  400 


$2,712 


All  of  which  you  have  enjoyed  the  free  use. 

"  I  now  propose  to  surrender  to  you  the  water  and  the  other 
work  for  $2000. 

"  All  of  which  is  respectfully  submitted, 

"  BENJ.  TROLDTGER. 
"  Haw  River,  April  10th,  1857." 

Under  this  proceeding  the  sum  of  $2000  was  paid  to  Gen. 
Trolinger,  and  your  committee  learn  that  the  water  and  water 
station  are  of  little  or  no  value  to  the  company,  being  only 
two  miles  from  Graham  station  and  four  miles  from  the  shops- 

Your  committee  deemed  it  expedient  and  within  the  range 
of  their  inquiry,  to  investigate,  as  far  as  possible,  the  expe- 
diency of  running  the  express  train  on  this  road.  We  were 
led  to  this  investigation  by  the  following  remarks  of  Col. 
Gwynn  in  his  farewell  address,  when  leaving  the  road  ;  opin- 
ions touching  matters  pertaining  to  his  profession,  being  the 
most  reliable  land-marks  within  our  reach. 
I  He  says  in  his  said  report  to  the  directors  of  the  10th  of 


1858-9.]  Document  No.  71.  I3 

January,  1S56,  tendering  his  resignation  as  chief  engineer — 
l*  1  vroxald.  .earnestly  recommend,  as  the  result  of  my  observa- 
tion for  a  long  period,  that  the  company  adopt  a  low  rate  ot 
speed  for  their  passenger  and  freight  trains.  If  there  is  any 
one  proposition  in  railway  economy,  and  there  are,  I  assure 
the  board,  but  few  clearly,  fully  and  practically  demonstrated, 
it  is  the  economy  of  low  speeds  ;  though  the  precise  difference 
between  the  cost  of  transportation  due  to  different  degrees  of 
speed  has  not  yet  been  ascertained,  it  is  usually  estimated 
that  the  wear  and  tear  of  the  track  and  machinery  is  equal  to 
the  squares  of  the  speeds  at  which  the  trains  are  run.  The  de- 
preciation then,  at  20  miles  per  hour,  would  be  four  times 
greater  than  at  10  miles  per  hour,  that  is  the  wear  and  tear 
would  he  as  4  tol.  The  speed  upon  every  road  should  be 
adapted  to  the  amount  of  business.  To  the  neglect  of  this 
rule,  and  the  establishment  of  uniform  rates  of  speed  upon 
most  of  the  railroads  of  the  country,  may  be  ascribed  the 
small  net  earnings  of  many  of  them."' 

He  then  recommends  a  speed  of  1(3  miles  an  hour  for  pas- 
senger trains. 

We  have  attempted  to  see  whether  there  has  been  any  in- 
crease of  receipts  on  account  of  passengers,  since  this  express 
train,  exclusively  used  for  the  transportation  of  passengers, 
was  put  on  the  road — which  would  compensate  the  damage 
done  by  the  extraordinary  speed  and  expenses  of  outfit  and 
running  it. 

Mr.  Fisher  says  in  his  report,  extraordinary  of  the  20th 
January,  1859,  that  this  train  ran  at  the  rates  of  26  miles  an 
hour,  from  the  7th  April  last,  to  the  6th  January,  without 
once  missing  a  connection. 

This  express  train  began  to  run  (see  Mr.  Fisher's  report  of 
July,  1857,)  on  the  13th  March,  1857,  and  witli  the  view  of 
comparing  the  increase  for  passengers,  before  and  after  this 
train  was  put  on  the  road,  as  well  as  to  show  the  gradual  In- 
crease of  travel,  we  annex  the  income  from  passengers,  for 
six  corresponding  months  in  18561  If  ore  the  express  was  put 
on  the  road — and  for  1357  and  1S58,  afterwards  : 


14:  Document  No.  71.  [Session 

1856.  1857.  1S58. 

July,            $11,216  18  $14,478  22  $13,807  70 

August,         11,112  13  13,433  95  13,553  48 

September,   12,408  28  15,750  59  14,637  20 

October,        11,320  05  16,085  15  15,710  17 

November,   10,940  37  10,337  70  12,704  73 

December,    13,057  97  12,716  93  15,241  08 


$70,054  98        $82,802   54        $85,454  36 

For  the  same  six  months  of  each  year  the  amount  received 
for  freights  is  as  follows : 

1856.  1857.  1858. 

$75,655  20  $90,565  25  103,919  67 

The  amount  received  for  freights  is  given,  in  this  connec- 
tion, only  to  show  that  there  is  a  gradual  increase  of  the  busi- 
ness of  the  road,  which  might  have  been  expected  from  pas- 
sengers as  well  as  freight. 

As  to  the  outfit  for  the  express  train,  we  learn  from  Mr. 
Roberts,  master  machinist,  that  seven  engines  are  employed 
in  the  express  train  service — and  four  in  carrying  the  mails 
— and  that  these  seven  engines  cost  on  the  road    $63,700  00 

2  new  coaches,  -  5,000  00 

3  baggage  cars,  -  4,500  00 

Total  outfit  for  express  train,        -  -        $73,200  00 

Mr.  Fisher  in  his  report  of  July  1857,  says  "the  additional 
cost  of  this  second  train  has  been  $1041  per  month,  actual  ex- 
pense. " 

Mr.  Roberts's  estimate  of  the  monthly  expense  is  as  follows : 

7  Engineer*  at  $85  00  per  month,  $595  CO 

4  Conductors "  50  00  "  200  00 
14  Firemen  "  12  50  "  175  00 
14  Breakmen  "  22  00       "  308  00 


185S-9.]  Document  No.  71.  15 

Expenses  of  7  engines  for  a  year  $108.50,  per  month,  $904  00 
Expense  per  month,  $2,182  00 

The  income  of  both  lines,  mail  and  express,  for  the  6  months 
in  1857,  beginning  with  July,  more  than  three  months  after 
this  second  train  started,  is  $82,802.54 

Income  of  mail  train  for  the  corresponding 

6  months  in  1856,  is  70,054.98 


Gain,  $12,747.56 

Deduct  expense  of  running  express 

train  as  per  Roberts's  estimate  per 

month  $21 82  +  6,  $13,092.00 

Interest  on  outfit  for  6  months  at  8 

per  cent,  per  annum,  $2,888  15,980.00 


Net  loss  for  six  months,  3,232.44 

Saying  nothing  about  the  wear  andtear  of  road  and  machinery. 

For  the  same  6  months  of  the  year  1S58,  there  was  an  in- 
crease over  the  corresponding  months  of  1857  of  $2651.82, 
but  much  more  than  this  increase  took  place  as  to  freights,  and 
might  have  been  expected  as  to  passengers,  without  the  ex- 
press ;  and  it  is  observable  that  there  was  an  actual  fall- 
ing off  as  to  passengers  in  July,  August,  September  and  Octo- 
ber, 1858.  The  small  increase  in  the  months  of  November 
and  December,  is  probably  attributable  to  the  increase  of  way 
travel,  during  the  sitting  of  the  General  Assembly. 

We  observe  that  R.  P.  Dick,  at  a  meeting  of  the  directors, 
held  on  the  13th  November  1857,  moved  that  the  express 
train  be  discontinued;  motion  did  not  prevail,  three  voting  in 
the  affirmative,  5  in  the  negative. 

We  submit  these  facts,  in  relation  to  the  express  train,  with- 
out comment. 

As  to  the  loan  of  $350,000,  at  8  per  cent,  interest.  We  find 
that  the  stockholders,  at  their  general  meeting  on  the  11th 
July  1856,  authorized  the  president  and  directors  to  issue  the 
coupon  bonds  of  the  company  for  the  sum  of  $350,000,  with 


1G  Document  So.  71.  [Session 

interest  payable  semi-annually,  payable  in  ten  years,  at  an  in- 
terest  of  6  per  cent,  for  the  purpose  of  meeting  the  present 
liabilities  of  the  company  and  the  purchase  of  the  necessary 
motive  power  and  cars. 

On  the  Mill  November,  1850,  the  directors  appointed  a 
committee  to  "  make  a  report  of  the  condition  of  the  road  and 
its  finances  to  the  Legislature,  in  order  to  securing  some  ac- 
tion in  reference  to  the  bonds  and  making  them  available  ;" 
alluding  to  the  coupon  bonds  of  the  company  aforesaid. 

Upon  the  memorial  of  this  committee,  an  act  was  passed 
in  1856-'57,  authorizing  the  directors  to  issue  the  $350,000  of 
coupon  bonds,  declaring  them  exempt  from  taxation  for  ten 
years,  and  authorizing  the  board  of  directors,  at  their  discre- 
tion, to  fix  a  rate  of  interest,  not  exceeding  S  per  cent.,  and 
requiring  them  to  assign  and  set  apart  a  sufficient  amount  each 
year,  out  of  the  yearly  income  of  the  road,  to  pay  off  the  in- 
terest on  the  bonds  regularly,  and  to  constitute  a  sinking  fund 
sufficient  to  discharge  the  principal  amount  when  due,  "and 
this  amount,  so  set  apart  as  a  sinking  fund,  shall  be  shown  in. 
the  annual  report  of  the  board."  The  directors,  vnthout  call- 
ing another  meeting  of  the  stockholders,  fixed  the  rate  of  inter- 
est at  8  per  cent,  and  sold  the  bonds  at  a  premium  of  $137.5,0. 

On  the  9th  of  July  1S57,  the  directors  ordered  "that  the 
sum  of  $25,0000  be  set  apart  out  of  the  annual  receipts  and 
income  of  the  road,  as  a  fund  to  be  invested  and  pledged  for 
the  payment  of  the  principal  of  said  bonds,'"  at  maturity. 

On  the  motion  of  Judge  Ruffin,  proxy  for  the  State,  *  like 
resolution  was  passed  by  the  stockholders  at  their  annual 
meeting  in  July  185S. 

On  the  8th  December,  1858,  the  date  of  Mr.  Fisher's  letter 
to  Governor  Bmgg,  a  meeting  of  the  directors  was  held,  and 
another  order  made  to  set  apart  $25,000,  in  State  bonds,  de- 
signating the  number  of  each  bond,  with  the  interest  payable 
in  April  and  October,  as  the  first  instalment  of  the  sinking- 
fund  ;  and  we  find  that  they  were  handed  to  the  Treasurer 
for  registration  on  the  1.6th  December,  1858,  nearly  two  years 
having  elapsed  since  the  passage  of  the  act  requiring  this 
amount  to  be  set  apart  "  each  year. " 


IS58-9.]  Document  No.  71.  17 

As  to  the  expediency  of  extensive  shops  of  construction  and 
repair,  your  committee  concur  with  every  administration  of 
the  road,  that  they  are  indispensably  necessary  ;  and  as  to  the 
question  where  they  should  have  been  located,  the  opinion  of 
the  engineer  was  entitled  to  great  consideration,  and  we  have 
examined  his  report  on  this  subject  of  August,  1853,  as  well 
as  numerous  letters  addressed  to  him  by  many  distinguished 
engineers,  in  reply  to  a  circular  letter  written  to  them  by 
him,  asking  their  views  on  the  subject.  Nearly  all  of  them 
concur  in  recommending  the  location  of  the  principal  shops 
near  the  center.  We  do  not  find  that  Col.  Gwynn  or  any  oth- 
er engineer  recommended  that  the  town,  which  must  neces- 
sarily grow  up  around  the  shops,  for  the  residence  of  the  offi- 
cers aud  operatives,  and  other  houses  needed  in  a  town, 
should  be  built  by  the  rail  road  company.  "We  have  not  been 
able  to  conceive,  or  learn  from  others,  any  reason  to  sustain 
this  policy. 

What  each  or  either  of  the  57  buildings  at  the  shops  cost, 
the  treasurer  and  book-keeper  informed  us  that  they  had  not 
the  means  of  ascertaining.  The  rate  of  rent  is  fixed,  by  the 
Directors  at  8  per  cent  on  cost — but  though  many  of  these 
buildings  have  been  finished  and  occupied  for  several  years, 
nothing  could  be  found  in  the  office  showing  the  cost  of  any 
of  them.  Some  of  them  have  paid  rent,  but  how  the  amount 
to  be  paid  was  ascertained,  these  officers  cannot  tell.  The 
bills  of  the  carpenters  for  work,  the  company  finding  all  the 
lumber,  are  hereto  annexed,  embracing  some  brick.  The 
four  bills  of  Dudley  &  Ashley,  No.  7,  amount  to  $28,917  38. 
We  call  attention  to  them  for  several  purposes : — First,  the 
treasurer  and  book-keeper  say  that  the  written  contracts  un- 
der which  this  work  was  done,  if  any  exist,  are  not  on  file 
with  them. 

Secondly.  Most  of  them  are  without  date,  and  one  of  them 
contains  items  for  work  done  by  the  day,  in  the  year  1856, 
amounting  to  more  than  $6,000. 

Thirdly.     The  credits  for  all  these  bills  are  entered  on  the 
books,  21st  December,  1858,  by  order  of  the   President,  who 
2 


18  Document  No.  71.  [Session* 

appears  to  have  passed  on  them,  without  any  estimate  by  any 
disinterested  party  competent  to  make  it. 

As  to  the  house  of  master  of  machinery,  the  Directors  or- 
dered on  the  3d  of  May,  1856,  that  it  be  built  at  a  cost  not 
exceeding  $8,000.  It  is  seen  that  the  brick  work  and  carpen- 
ter bill,  by  contract,  amount  to  $2,902  75,  to  which  is  to  be 
added  the  cost  of  lumber,  shingles,  painting,  and  other  mate- 
rial. The  master  machinist  informed  us  he  had  lived  in  this 
house  two  years — that  he  did  not  know  the  cost,  and  had  paid 
no  rent. 

On  the  10th  of  April,  1857,  the  Directors 

"  .Resolved,  That  it  is  advisable  to  build  a  hotel  boarding 
house  not  to  exceed  $8,000  in  cost.  Ordered  further,  that  a 
committee  of  three  consisting  of  Messrs.  Fries,  Mebane  and 
Shaver  be  associated  with  the  President,  to  cany  out  the  res^ 
olution  tor  erection  of  hotel  boarding  house." 

By  reference  to  exhibits,  No.  7,  you  will  see  that  Dudley  & 
Ashley's  bill  for  the  carpenter  work  only,  not  including  any 
lumber,  is  $6,711  08.  It  is  a  brick  building.  What  was  the 
cost  of  brick,  masomy,  lumber,  painting,  &c,  we  could  not 
ascertain  ;  but  we  infer  from  the  cost  of  carpenter  work,  that 
the  total  cost  cannot  be  short  of  $15,000  or  $20,000.  We  ad- 
dressed a  letter  to  Mr.  Fries,  one  of  the  committee  associated 
with  the  President,  to  explain  why  a  building  was  erected, 
costing  so  largely  above  the  amount  limited  by  the  Directors. 
See  his  answer  annexed,  No.  8. 

The  president,  in  his  report  to  the  directors,  July,  1S57, 
says  "you  have  provided  that  the  cost  of  every  building  at 
this  place  must  pay  a  good  dividend  by  a  fair  rent  to  the 
company.  Only  the  shop  buildings  are  an  exception,  and 
these  ought  to  pay  in  profitable  return,  indirectly,  most  of  alb" 
By  order  of  the  directors  the  houses  are  to  be  rented  at  8 
per  cent,  on  cost. 

Your  committee  do  not  deem  it  judicious  policy  to  borrow 
money  at  8  per  cent,  and  invest  it  in  houses  to  be  rented  at 
8  per  cent. 

What  the  several  houses  at  the  shops  cost  your  committee 
believe  no  one  can  tell     In  Mr.  Fisher's  report,  extraordina- 


1858-'9.]  Document  No.  71.  19 

ry,  to  the  governor,  dated  January  20th,  1859,  (a  report  nof 
authorized  by  the  directors,  so  far  as  their  journal  shows,  and 
not  provided  for  in  the  charter  or  by-laws  of  the  company,) 
which  lias  so  much  delayed  our  inquiries,  the  cost  of  the 
shops  is  set  down  at  $124,375  98 

Buildings  at  65,560  98 


$189,930  96 
In  Mr.  Fishers  report  of  Jul}*,   1S58,  the  cost 
of  the  shops  for  1855,  1856,  1857,  and  to  July, 
1858,  is  $124,374  9S 


$65,561  98 
Assuming  each  of  these  reports  to  be  accurate,  there  has 
been  expended  on  the  shops,  since  July  1st,  1858,  $65,561  98. 

In  relation  to  the  abstract,  appended  to  the  report  of  1858, 
the  president  remarks,  "appended  to  this  report  will  be  found 
various  abstract  statements  which  explain  themselves.  That 
showing  the  disbursement  account  of  the  past  three  years, 
during  the  rime  of  the  present  administration  of  the  road,  has 
been  made  out  by  reference  to  every  warrant,  in  detail,  and 
can  therefore,  contain  no  error;  it  must  show,  with  perfect  accu- 
racy, the  total  payments  of  this  period,  duly  apportioned." 

This  statement  is  headed  "statement  showing  the  total  dis- 
bursement, in  detail,  from  July  1st,  1855,  to  July  1st,  1858," 
and  yet  you  see  enormous  accounts  credited  to  Dudley  and 
Ashley,  and  one  J.  Gr.  Moore,  since  this  committee  icas  appointed 
for  work  done  as  far  back  as  1856.  Moore  seems  to  be  a  doer  of 
odd  jobs  about  the  shops,  as  we  infer  from  the  items  of  his  ac- 
counts. He  is  charged  wTith  cash,  at  sundry  times,  beginning 
in  December,  1855,  $12,473  67,  and  he  is  credited  with  esti- 
mates to  the  amount  of  $15,950  78,  leaving  balance  due  him, 
January  1st,  1859,  of  $3,477  11.  We  annex  hereto  No.  9, 
an  exhibit  of  said  account,  and  ISio.  10,  items  in  his  credits, 
as  tending  to  show  the  general  management  of  this  road. 

You  will  see  his  credits  on  1st  December,  1S58 — after  this 
committee  was  appointed — to  the  amount  of  $11,750  72. 
Much  more  than  half  thi.<?  nc^onnt  is  for  labor  by  common 
hands  at  vl  00  per  day. 


20  Document  No.  71.  [Session 

You  will  sec  by  this  general  account  that  if  we  had  found 
the  books  in  the  condition  in  which  they  stood  November 
30th,  1858,  Moore's  debits  would  have  been  $12,425  32,  and 
his  credits  $4,299  86,  so  that  on  the  30th  November,  1858, 
the  balance  would  have  been  $8,125  42  in  favor  of  the  com- 
pany. One  month  afterwards  the  balance  in  his  favor  is 
$3,477  1 1 .  The  foregoing  is  giveu  as  a  specimen  of  the  finan- 
cial management — as  regards  the  shops. 

It  should  be  here  remarked  that  no  fault  is  imputable  to 
the  book-keeping  or  book-keeper  as  to  these  accounts.  He  is 
bound  to  pay  on  the  waraant  of  the  President.  He  could 
take  no  notice  of  any  claim  held  by  Moore  against  the  com- 
pany until  the  President  settled  it.  For  instance,  when  Moore 
presented  his  warrant  from  the  President,  dated  November 
26th,  1858,  for  $500,  the  book-keeper  and  treasurer  could  see 
by  his  account  that  Moore  owed  the  company  $7,625  36,  and 
yet  the  treasurer  was  bound  to  honor  the  draft.  Things  of 
this  kind  ought  not  to  have  escaped  the  attention  of  the  com- 
mittee of  finance.  If  they  did  attract  their  attention,  and 
they  had  reference  to  them  in  their  report  to  the  ninth  annual 
meeting  of  the  stockholders,  we  think  that  report  would  con- 
vey the  impression  that  the  imperfect  condition  of  the  ac- 
counts was  the  fault  of  the  book-keeper,  when  it  was  obvious- 
ly the  fault  of  the  President  of  the  company.  The  accounts 
of  Dudley  &  Ashley,  Moore  and  others,  could  not  find  their 
way  to  the  books  except  by  the  act  of  the  President. 

We  call  your  attention  particularly  to  that  report,  which 
will  to  some  extent  explain  the  want  of  reliability  due  to  the 
reports  of  1856,  1857  and  1858,  as  to  the  financial  condition 
of  the  company,  to  which  we  shall  refer  in  a  subsequent  part 
of  this  report. 

The  following  is  an  extract  from  that  report : 

"As  the  9th  annual  report  of  the  fiscal  concerns  of  the 
company,  your  committee  would  have  contented  themselves 
by  closing  their  report  here,  but  their  desire  to  discharge  their 
whole  duty,  requires  they  should  no  longer  refrain  from  call- 
ing the  attention  of  the  company  to  the  entire  want  of  sys- 
tem in  keeping  the  books  of  the  company,  as  practised  by  those 


1858-'9.]  Document  No.  71.  21 

who  have  them  in  charge.  Book  keeping  has  been  long  ago 
reduced  to  a  perfect  system,  simple  and  easy  to  be  understood, 
and  there  is  nothing  in  the  principle  of  keeping  the  books  of 
this  corporation,  which  varies  from  that  of  others  differing 
from  it  in  character,  or  any  well  regulated  mercantile  estab- 
lishment, and  what  would  be  said  of  either  corporation  or 
merchant,  when  called  upon,  who  would  ask  for  more  time  to 
exhibit  their  financial  condition,  than  would  be  necessary  to 
make  a  copy  of  his  general  balance  sheet  ? 

"This  state  of  things  ought  no  longer  to  exist  with  this  cor- 
poration,  and  it  is  in  consequence  of  such  a  state  of  things  that 
your  committee  have  never  been  able,  at  any  of  thier  reports, 
to  place  before  you  the  debit  side  of  your  account. 

"  The  statements  of  balances  due  by  station  agents,  just 
read  in  your  hearing,  suggest  the  propriety  of  some  change 
in  the  mode  cf  settling  their  accounts.  Your  committee  hope 
not  to  make  themselves  obnoxious  to  the  charge  of  a  desire  to 
dictate  to  those  in  authority,  in  this  matter,  but  their  wish  to 
remedy  this  growing  evil,  prompts  them  to  suggest  whether 
it  could  not  be  accomplished  by  making  it  the  special  dr.ty  of 
some  one  employee  of  the  company  to  visit  twice  a  month  the 
different  agencies,  and  settle  the  accounts,  and  receive  the 
amounts  due  on  transportation  account.  This  could  be  easily 
done,  as  the  daily  returns  of  each  agent  is  already  in  the  office, 
showing  his  indebtedness  at  any  given  time.  The  condition 
to  be  attached  to  a  failure  of  the  agent  to  settle  as  required, 
to  be  departed  from  in  no  case  whatever,  except  for  very  sub- 
stantial reasons,  should  be  forfeiture  of  his  office.  Again ; 
no  agent  appointed  should  be  allowed  to  take  upon  himself 
the  duties  of  his  office,  until  a  good  and  sufficient  bond,  in 
double  the  amount  of  one  month's  receipts  at  such  station, 
shall  be  given,  approved  by  the  board  of  directors  or  filed  in 
the  office  of  the  company." 

The  same  system  of  book-keeping  is  continued.  Yon  will 
see  how  far  respect  has  been  paid  to  their  admonition,  as  to 
settlements  with  station  agents,  and  bonds  for  the  discharge 
of  their  duties,  by  reference  to  a  table,  No.  11,  which  we  have 
prepared  and  annexed,  showing  the  amount  of  the  penalty  of 


22  Document  No.  71.  [Session 

each  station  agent's  bond,  and  the  balance  in  his  hands,  Jan- 
uary 1st,  1859.  No  system  of  book-keeping  can  be  adopted, 
which  will  make  the  book-keeper's  balance  sheet  show  the 
truth,  if  the  treasurer  be  required  to  pay  on  the  President's 
warrant,  without  showing  for  what  this  warrant  issued,  so 
that  he  can,  at  the  same  time  credit  the  account  of  the  party 
in  whose  favor  the  warrant  is  drawn,  by  the  amount  of  his 
claim  against  the  company.  No  instance  has  come  to  our 
knowledge  in  which  the  treasurer  or  book-keeper  has  failed 
to  make  proper  entries,  when  he  was  furnished  the  means  of 
doing  so. 

The  total  amount  collected  for  rents,  as  per  statement  furnish- 
ed us,  was,  on  1st  January,  1859,  $1,265  20.  At  eight  per 
cent,  they  would  have  produced  this  sum  in  less  than  three 
months. 

We  found  a  bond  on  file  executed  by  Benjamin  Trolinger 
and  others,  promising  to  refund  by  the  1st  October,  1854,  to 
the  North  Carolina  Railroad  Company,  $3,248.37,  paid  by  the 
company  for  the  shop  lands.  We  are  informed  by  the  Treas- 
urer that  $1,800  was  paid  on  this  bond  in  August,  1855,  and 
that  no  steps  have  been  taken,  within  his  knowledge,  to  col- 
lect the  balance.  When  the  company  was  paying  12  per 
cent,  interest  to  raise  money  to  pay  debts  we  can  perceive  no 
reason  why  this  debt  was  not  collected. 

Tour  committee  called  on  the  treasurer  and  book-keeper 
for  the  accounts  of  the  North  Carolina  Railroad  Company 
against  the  Western  Extension,  for  work  and  material  furnish- 
ed for  that  road.  No  such  account  was  on  the  books.  We 
examined  Mr.  Roberts  on  this  subject,  who  stated  that  the 
work  done  at  the  shops  for  the  Western  Extension  from  June 
1st,  1857,  to  July  1st,  1858,  amounted  to  $435.18 

And  from  July,  1858,  to  December,  1858,  to  1,508.33 

And  the  book-keeper,  Mr.  Mills,  stated  that 
the  amount  due,  January,  1859,  from  Wes- 
tern Extension  for  freight,  is  19,663.26 

And  not  on  book,  2,600.00 


And  the  only  credit  is  $2,000,  paid  in  Sept.,  1857,  $23,20.77 


1858-9.]  Document  No.  71.  23 

[See  exhibit,  No.  13,  which  came  to  our  hands  after  this 
statement  was  made  out.] 

Your  committee  learn  that  the  actual  cost  of  transportation 
of  iron  and  other  heavy  articles  on  a  railroad  is  from  $2  50 
to  $3  per  ton,  per  100  miles.  On  the  10th  April,  1857,  the 
directors  ordered  that  the  freights  of  the  W.  N.  C.  Railroad, 
during  its  construction,  (of  material,  <fcc.,)  be  carried  at  the 
rate  of  two  cents  per  ton,  per  mile. 

In  Mr.  Fisher's  report  of  the  20th  January,  1S59,  he  sets 
down  the  amount  due  from  other  roads  at  $24,412  53 

Deduct  amount  due  from  Western  Extension  21,206  77 

Leaving  due  from  all  other  roads  3,205  76 

In  the  20th  January  report  the  resources  of  the  company 
are  stated  to  amount  to  $218,249  75 

And  its  liabilities  to  177,043  39 


Surplus  on  hand  $41,206  36 

You  will  observe,  among  these  resources,  the  sum  of  $27,- 
665  25  due  from  individuals  on  unpaid  stock;  much  the  larger 
portion  of  this  is  entirely  worthless.  The  estate  of  one  de- 
ceased stockholder  owes  $10,070  of  it,  and  there  are  no  assets 
applicable  to  the  payment  of  this  stock.  It  has  been  long  re- 
garded as  entirely  hopeless. 

At  one  of  the  early  meetings  of  this  committee,  we  asked 
the  book-keeper  and  treasurer  to  furnish  us  with  a  detailed 
statement  of  the  debts  due  to  and  from  the  company.  Soon 
afterwards  the  books  were  taken  off  by  Mr.  Mills,  so  that  Mr. 
Mendenhall  could  not  furnish  it;  and  when  Mr.  Mills  returned 
he  stated  that  it  would  appear  in  the  forthcoming  report  of  the 
President  of  the  Road.  On  the  appearance  of  the  report,  the 
statement  not  appearing  sufficiently  in  detail,  the  chairman 
addressed  the  book-keeper,  asking  him  to  furnish  the  commit- 
tee "  with  a  detailed  statement  of  the  debts  due  to  the  K.  C. 
Railroad,  specifying  the  name  of  the  individual  or  corporation 
owing  each  debt,  also  a  list  of  the  debts  owing  by  the  corpo- 
ration, specifying  to  whom  and  when  each  debt  is  due,  bring- 
ing up  this  statement  to  the  same  period  to  which  these  ac- 


24  Document  No.  71.  [Session 

counts  were  brought  in  Mr.  Fisher's  report  to  the  governor 
of  the  State  of  the  20th  instant."  This  letter  was  dated  the 
26th  January. 

We  had  understood  from  Mr.  Mills  that  his  presence,  with 
his  hooks,  was  much  needed  at  the  shops,  and  we  had  consent- 
ed on  the  22d  January  that  the  treasurer  and  bookkeeper  "have 
leave  to  remove  to  their  respective  offices  all  their  books  and 
papers  (excepting  those  in  possession  of  the  committee)  sub- 
ject to  any  further  call  for  information  which  the  committee 
may  make  on  them." 

No  answer  being  received  from  Mr.  Mills,  under  the  order 
of  the  committee,  the  chairman,  on  the  1st  February,  ad- 
dressed to  Mr.  Fisher  a  letter,  of  which  the  following  is  a 
copy: 

"  Ciias.  F.  Fishes,,  Esq  : 

"  Dear  Sir  : — The  committee  investigating  the  affairs  of 
the  North-Carolina  Railroad,  instruct  me  to  say  to  yon  that 
they  wish  you,  the  treasurer  of  the  Company,  Mr.  Menden- 
hall,  and  Mr.  Mills,  the  book-keeper,  to  appear  before  them 
at  your  office  in  Raleigh,  at  4  o'clock  P.  M.,  on  Thursday 
next,  then  and  there  to  exhibit  to  us  a  detailed  statement  of 
the  debts  due  to  the  North-Carolina  Railroad  Company,  spec- 
ifying the  name  of  the  individual  or  corporation  owing 
such  debt,  and  producing  the  evidence  of  such  debt ; 
also,  a  list  of  the  debts  which  the  company  owes,  and 
to  whom  each  debt  is  due,  bringing  up  these  statements  to 
the  same  period  to  which  these  accounts  were  brought,  in 
your  report  to  the  Governor,  of  the  20th  of  January,  1859. 
We  further  wish  to  be  furnished,  at  the  same  time,  with  a 
list  of  all  the  debts  of  said  Company,  contracted  prior  to  the 
13th  of  July,  1855,  and  which  have  been  paid  since  1st  De- 
cember, 1856,  the  existence  of  which  was  not  known  to  you 
at  the  latter  date,  with  the  warrants  under  which  said  pay- 
ments were  made. 

Yours,  respectfully, 

JONATHAN  WORTH,  Chairman. 

P.  S.  If  the  statements  cannot  be  made  ready  by  the  time 


L858-U]  Document  No.  71.  25 

specified,  please  Lave  the  books  and  papers  here,  from  which 
they  can  be  made." 

At  the  time  appointed,  having  received  no  answer  from 
Mr.  Fisher,  three  members  of  the  committee  attended  at  the 
place  appointed,  when  Mr.  Fisher  told  one  of  them,  Dr.  Mills, 
who  went  to  him  to  inform  him  that  we  were  in  attendance, 
that  he  refused  any  further  investigation  on  the  subject. 
Being  satisfied  that  we  should  be  unable  to  report  before  the 
end  of  the  session,  if  we  took  the  steps  necessary  to  coerce  the 
attendance  of  the  President  and  the  book-keeper,  we  resolved 
to  report  the  facts  we  had  obtained. 

Yon  will  thus  see  that  our  purpose  to  investigate  important 
matters  involved  in  the  inquiry  committed  to  us,  has  been 
frustrated.  We  have  a  list  of  delinquent  stockholders,  and 
entertain  no  doubt  that  the  statement  in  the  report  of  20th 
January,  is  delusive,  as  to  the  greater  part  of  §27,6(55  25  due 
from  stockholders,  if  the  impression  was  intended  that  this 
sum  is  available.  As  to  the  other  debts  and  liabilities,  we 
can  say  nothing,  for  the  reasons  above  stated. 

Your  committee  fixed  on  the  period  to  which  Mr.  Fisher 
had  brought  up  his  accounts,  in  his  report  to  the  Governor, 
because  it  would  be  easy  to  furnish  it,  as  we  supposed,  as  the 
details  must  have  been  made  out  to  obtain  the  aggregates. 

The  latter  inquiry  in  the  letter  from  the  chairman  to  Mr. 
Fisher,  of  the  1st  February,  was  suggested  by  the  remark 
in  his  report  to  the  Governor,  that  his  error  as  to  the  finances 
of  the  compan}',  at  the  time  the  application  was  made  to  the 
General  Assembly  of  185G,  for  leave  to  sell  the  bonds  of  the 
company  at  a  higher  rate  of  interest  than  six  per  cent.,  arose 
from  "the  amount  of  old  debt,  unlisted,  and  not  known  to  ex- 
ist." He  sa}  s  in  his  report  last  mentioned,  "  the  vouchers  of 
payment  clearly  show  the  date  of  every  liability,  and  the  na- 
ture of  the  account.  In  the  annual  report  of  July,  1858,  this 
report  was  set  forth  in  detail  from  an  examination  of  each 
warrant  issued  by  me  since  July  1st,  1855,  and  would  have 
been  published  herewith,  but  it  was  found,  when  too  late,  so 
large  as  to  cause  a  delay  in  issuing  this  report,  which  I  was 


26  Document  No.  71.  [Session 

unwilling  to  allow."  From  this  it  was  supposed  that  it  would 
be  easy  to  furnish  the  information  desired.  It  was  not  sup- 
posed that  he  referred  to  old  debts  unlisted  and  not  knovm  to 
exihi,  created  during  his  own  administration. 

We  find,  at  the  close  of  the  fiscal  year,  1855,  when  Govern- 
or Morehead's  administration  ceased,  the  finance  committee 
report  the  resources  of  the  company  as  follows  : 

In  the  hands  of  the  treasurer,  $420,727  44 

Due  upon  stock  of  individuals,  94,150  00 

Due  from  transportation  not  collected,  16,111  75 

With  a  treasury,  then  so  fall,  it  is  remarkable  that  there 
should  have  been  any  debts,  excepting  for  the  hire  of  negroes 
for  the  year,  then  half  expired,  not  known  to  exist,  18  months 
afterwards.  Mr.  Mendenhall  states  that  he  was  not  furnished 
with  the  lists  of  debts,  made  for  negro  hire  by  Col.  Gwynn, 
Gov.  Morehead  and  others,  until  the  notes  were  presented  for 
payment;  but  that  all  debts  for  construction  accounffound  their 
wry  to  the  books  by  the  bi-monthly  estimates  of  the  en  gineers. 

The  Board  of  Directors,  on  the  9th  July,  1858,  "  ordered 
that  station  agents  be  required  to  pay  over  their  accounts, 
due  from  them  every  Saturday,  to  the  treasurer,  and  that  the 
bonds  of  agents  belaid  before  the  board  at  their  next  meeting." 

We  examined  these  bonds,  and  took  a  memorandum  of  the 
penalty  of  each  of  them,  and  the  book-keepers  furnished  us 
with  a  statement,  showing  the  balance  due  from  each  of  them 
1st  January,  1859.  We  annex  hereto  a  statement,  No.  11, 
showing  the  balance  due  from  each  of  them  Januaiy  1,  1859, 
with  the  date  of  his  bond  and  the  amount  of  his  penalty.  By 
reference  to  this  exhibit  you  will  see  that  several  of  them  owe 
balances  largely  exceeding  the  penalty  of  their  bonds ;  that 
some  of  them  have  given  no  bond  ;  that  the  following  have 
gone  out  of  office,  largely  defaulters,  to  wit:  R.  Fulghun, 
formerly  station  agent  at  Smithfield,  owing  $1,01S  19,  penalty 
of  his  bond  $300  ;  W.  H.  Woodard,  formerly  station  agent  at 
Goldsboro',  penalty  of  his  bond  not  exceeding  $3,000,  owing 
a  balance  of  $5,279  62.     We  did  not  examine  this  bond  while 


185S-'9.]  Document  No.  71.  27 

we  had  access  to  the  papers.  The  treasurer,  Mi1.  Mendenhall, 
states,  from  memory,  that  the  penalty  does  not  exceed  $3,000. 
11.  W.  Hamlet,  formerly  station  agent  at  Haw  River,  gave  no 
bond — balance  due  from  him  in  suit  $825  SO.  The  treasurer 
informs  us  that  Hamlet  was  not  appointed  by  the  directors; 
that  the  balance  due  from  him,  when  he  left,  was  about  $2,000 ; 
that  by  the  President's  order,  about  half  this  sum  was  credited 
to  Hamlet  and  charged  to  Benjamin  Trolinger,  who  owes  all 
or  nearly  all  of  it,  and  is  insolvent. 

We  annex  a  list  of  the  directors  for  each  year,  distinguish- 
ing those  appointed  by  the  State  and  the  stockholders,  with 
the  number  of  shares  of  stock  owned  by  each  at  the  time  of 
his  appointment,  the  number  of  days  each  has  served  since 
the  completion  of  the  road,  over  which  they  travel  free  at  all 
times.  And  we  understand  that  by  some  interchange  of  rail- 
road courtesies,  they  may  travel  free  over  all  the  North- 
Carolina  roads,  and  those  between  here  and  New  York.  This 
exhibit  is  marked  No.  12. 

We  again  call  your  attention  to  the  accounts  of  J.  G.  Moore, 
the  doer  of  odd  jobs  at  the  shops.  You  will  see  by  the  ex- 
hibit annexed,  No.  10,  he  received  for  the  first  6  months  of 

1857,  $2,210  8G 

And  for  the  same  period  he  received  all  for  the  labor 

of  hands  by  the  day,  at  a  dollar  per  day,  except 

Gilbert,  the  blacksmith,  147i  days,  $195-50,  1,815  25 


$4,026  11 

And  for  the  last  6  months  of  1S57,  by  account  annexed,  you 

will  see  he  received,  $2,208  11 

And  (all  for  work  by  the  day,)  1,473  CO 


$3,081  11 
First  6  months  forwarded,  4,02G  11 


Total  for  the  year  1857,  $7,707  22 

Besides  this,  you  will  see  that  he  received  "from  1856  to 
1858  "  for  wells,  &c,  $2,002.72^, 


28  Document  No.  71.  [Session 

The  accounts  of  $1,815.25  and  $1,473.00,  are  not  set  out  in 
detail,  to  avoid  making  this  report  too  voluminous. 

His  charge  for  personal  superintendence  in  1 857,  at  $1.50 
per  day,  amounts  to  $471.00 

The  laborers,  as  we  understand,  for  whom  he  is  allowed 
$1.00  per  day,  are  common  hands — negroes  principally. 

To  show  what  degree  of  confidence  is  due  to  the  reports  of 
the  President,  which  we  regard  as  endorsed  by  the  directors, 
we  propose  to  review  the  reports  of  1856-'57-'5S,  and  20th  of 
January,  1859.  For  the  latter  report,  we  do  not  regard  the 
directors  as  responsible. 

In  Mr.  Fisher's  report  of  July,  1856,  he  estimates  that 
$350, 0U0  will  pay  the  debts  and  complete  the  construction  of 
the  road.  He  says,  ''  the  statements  of  this  report  have  been 
made  with  more  than  usual  minuteness,  and  the  estimates 
submitted  are  such  as  we  have  every  reason  to  believe  will 
make  a  full  completion  of  this  work  ;  and  such  has  been  my 
conviction  of  the  importance  and  necessity  of  a  speedy  and 
entire  completion,  as  to  cause  me  to  have  made  out  and  to 
present  to  you  such  full  estimates  as  could  leave  no  doubt  of 
affording  the  administration  the  means  for  placing  this  road 
on  a  firm  footing,  clear  of  the  little  indebtedness  which  brings 
constant  vexation,  and  with  the  equipment  indispensable  to 
its  safe  and  profitable  operation." 

This  is  reiterated  in  the  memorial  to  the  Legislature,  asking 
privilege  to  sell  the  bonds  of  the  company  at  an  increased 
interest.  At  the  time  the  act  passed,  allowing  the  issue  of 
the  8  per  cent  bonds,  Mr.  Fisher  had  been  President  of  the 
road  18  months;  had  been  excessively  harrassed  and  paying 
at  the  rate  of  12  per  cent  per  annum  to  raise  money  to  meet 
the  liabilities  of  the  company,  and  one  would  have  supposed 
might  have  found  out  what  it  owed.  He  professed  that  he 
had  found  out. 

The  $350,000  was  raised  on  the  company's  bonds,  and  there- 
after, if  the  foregoing  report  had  been  correct,  the  next  earn- 
ings of  the  road,  less  the  interest  on  this  $350,000  and  the  sink- 
ing fund,  providing  for  its  payment,  would  have  been  surplus 
for  dividends. 


183S-9.]  Document  No.  71.  29 

In  his  report  of  1857,  lie  says  the  net  earnings  amount,  for 
the  past  year,  to  $162, 1)24:  03,  bur  states  that  "  a  larger  amount 
of  outstanding  indebtedness  has  been  paid  than  was  known  to 
exist." 

In  July,  1858,  he  reports  the  net  earnings  over  operating 
expense,  for  the  preceding  year,  to  be  $185,212  06. 

In  his  report  of  the  20th  January,  1859,  he  makes  ihe  net 
earnings,  from  July  1st,  1858,  to  January  1st,  1859,  $112,- 
544  98. 

These  net  earnings,  summed  up,  stand  thus  : 

Net  earnings  for  the  year  ending  July,  1857,         $102,924  63 
"        "  "  "         "     '   July,  1858,  185,212  00 

"        "         to  January,  1859,  112,51:198 


$460,681  67 
Deduct  interest  for  two  years  on  the  $ 350,000  at 

8  per  cent  $56,000 

Sinking  Fund.  $25,000  $81,000 


1379,681  67 

If  Mr.  Fisher's  estimates,  made  with  so  much  care  in  July, 
1856,  had  been  correct,  then  the  net  surplus  in  the  treasury, 
according  1o  his  own  showings,  should  have  been,  on  the  first 
of  January,  1859,  8379,0b  1  67,  instead  of  $41,205  30.  As  the 
Express  tiain  was  not  contemplated  in  the  estimates  of  1856, 
amounting  to  -173,200,  this  sum  ought  a]so  to  be  deducted. 
This  would  reduce  the  net  surplus  to  $306,481  67 

Deduct  the  present  reported  surplus  $41,205  36 


#265,276  31 

And  you  will  s  ie,  to  make  these  reports  consistent,  that  there 
must  have  been  paid  within  two  years,  $265,276  31,  on  debts 
"not  known  to  exist,"  at  the  time  the  memorial  was  submit- 
ted to  the  General  Assembly  at  its  last  session. 

Your  committee  believe  from  the   report   of  Col.  Gwynn, 


30  Document  No.  71.  [Session 

on  leaving  the  road,  sustained  by  repeated  reports  of  the 
President  and  directors  since  that  date,  that  the  road  was 
cheaply  constructed,  and  that  its  future  prospects,  if  well  and 
economically  managed,  are  highly  encouraging. 

Your  committee  are  not  ignorant,  that  in  the  management 
of  so  extensive  a  road,  the  most  vigilant  and  judicious  ad- 
ministration might  commit  errors.  But  making  due  allow- 
ance for  these,  we  think  the  facts  herein  disclosed,  warrant  the 
conclusion  that  this  road  has  been  badly  managed — by  Ihe 
Presiden  and  Directors — in  the  particulars  which  we  have 
been  able  to  examine,  in  the  time  and  under  the  circum- 
stances, herein  set  forth.  In  many  important  particulars,  we 
have  made  no  examination,  because  we  could  not  do  it  with- 
out totally  neglecting  our  other  legislative  duties. 

We  regret  that  we  have  been  unable  to  make  our  investi- 
gation so  thorough  as  we  think  the  interests  of  the  State 
require. 

J.  WORTH,  Chairman. 
L.  A.  MILLS, 
EDWIN  D.  DRAKE, 
D.  D.  FERE  BEE. 


1S58-9.J  Document  No.  71. 


(No.  1.) 

Execu/tive  Office,  Raleigh,  Dec.  10,  1858. 

Sir?  I  received  yesterday  from  Charles  Fisher,  Esq.,  the 
enclosed  letter.  I  deem  it  due  to  him  that  the  committee  of 
which  you  are  chairman  should  be  apprized  of  his  intentions, 
and  therefore  send  you  the  letter. 

Very  respectfully, 

THOMAS  BRAGG. 
Dr.  Ladson  Mills. 

P.S. — Since  writing  the  above,!  find  that  the  committee  is 
a  joint  one,  and  niay  not  have  elected  a  chairman.  Please 
lay  the  letter  before  the  committee  when  it  meets.       T.  B. 


(No.  2.) 

President's  Office,  iN.  0.  Railroad,  ) 
Salisbury,  Dec.  8,  185S.       \ 

To  His  Excellency,  Gov.  Bragg  : 

Sin  : — At  the  earliest  date  which  is  possible,  I  propose,  by 
leave  of  the  board  of  directors,  to  make  to  your  Excellency, 
for  the  use  of  the  General  Assembly,  a  detailed  report  of  the 
affairs  of  this  company,  embracing  various  statements,  ab- 
stracts and  tables.  To  prepare  these  latter  being  a  labor  of 
some  magnitude  for  the  office  corps  (not  a  large  one)  in  addi- 
tion to  their  regular  daties,  which  they  alone  can  well  exe- 
cute, it  is  necessary  that  they  should  have  reasonable  time  to 
attend  to  the  work. 

I  have  the  honor  to  be 

Your  obedient  servant, 

CHARLES  F.  FISHER,  President, 


32  Document  No.  71.  [Session 

(No.  3.) 

Raleigh,  December  18th,  1858. 
Okas.  Fisher,  Esq., 

President  of  the  N.  C.  Railroad  Company — 

Sir: — The  undersigned  having  been  appointed  a  joint  com- 
mittee of  the  General  Assembly,  now  in  session,  to  inquire 
into  and  report,  upon  the  financial  condition  and  general  man- 
agement and  prospects  of  the  N.  C.  Railroad  Company,  have 
organized  and  are  ready  to  enter  upon  the  duties  assigned 
them  ;  but  in  consideration  of  your  letter  of  the  8th  inst.,  ad- 
dressed to  Gov.  Bragg,  and  by  him  transmitted  to  this  com- 
mittee, we  have  resolved  to  postpone  the  commencement  of 
the  investigation  till  the  4th  of  January  next. 

To  enable  us  to  make  the  investigation  proposed,  it  is  nec- 
essary to  have  the  books  of  the  company  before  us,  and  we 
therefore  request  you,  with  your  secretary  and  treasurer,  to 
appear  before  us  at  the  Governor's  office,  in  the  capitol,  at  4 
o'clock  p.  in.,  on  the  4th  day  of  January  next,  with  all  the 
books  of  the  company,  and  the  bonds  given  by  officers  and 
employees  of  the  company  for  the  discharge  of  their  respect- 
ive duties. 

We  conceive  it  to  be  our  duty,  under  the  resolution  refer- 
red to,  to  examine  your  by-laws,  the  proceedings  of  all  the 
meetings  held  by  the  stockholders  and  directory,  and  all  other 
books  and  papers  enabling  us  to  perform  fully  the  duty  as- 
signed to  us. 

We  give  you  this  early  notice,  becau-e  we  are  aware  that 
your  charter  contains  no  provision  authorising  the  General 
Assembiy  to  investigate  the  affairs  of  your  Company,  and  we 
presume  you  will  deem  it  necessary  to  consult  your  Directory 
before  complying  with  this  request ;  and  because  we  wish  to 
give  you  a  reasonable  time  to  prepare  for  the  enquiry. 
Very  respectfully  yours, 
[Signed  by  the  members  of  the  committee.] 


1858-9.]  Document  No.  71.  33 

President's  Office,  N.  C.  Railroad,  \ 
Salisbury,  Dec.  22,  1858.  f 

Gentlemen  :  I  have  had  the  honor  to  receive,  within  this 
hour,  your  letter  of  date  the  18th  inst.,  explaining  your  wishes 
as  a  "Joint  committee  of  the  General  Assembly  to  enquire 
into  and  report  upon  the  financial  condition,  general  manage- 
ment and  prospects  of  the  North  Carolina  Railroad  Company." 

I  noticed  the  appointment  of  the  committee,  and  have  wait- 
ed, expecting  to  receive  a  notification  of  what  might  be  their 
pleasure. 

It  will  afford  me  the  greatest  satisfaction  to  observe  your 
wishes  as  to  the  material  for  conducting  jour  enquiry,  and  to 
give  you  every  possible  aid  in  the  same.  The  treasurer  and 
secretary  will  be  also  in  attendance  on  your  meetings. 

I  consider  it  by  no  means  necessary  to  consult  the  Board  of 
Directors  (according  to  your  suggestion)  touching  this  matter, 
for  although,  as  you  remark,  our  charter  does  not  authorize 
such  an  investigation  in  terms,  yet,  as  a  State  work,  this  right 
must  belong  to  the  sovereign  power,  and  most  clearly  may  be 
and  ought  to  be  exercised  at  its  pleasure.  I  am  quite  sure 
that  the  board  would  be  prompt  and  unanimous  in  directing 
me  to  afford  you  every  possible  aid  and  facility,  and  that  their 
desire  would  be  (as  in  fact  they  so  informally  expressed  to 
me,  at  a  late  meeting,)  to  have  the  enquiry  most  thorough, 
full,  and  satisfactory. 

The  report,  which  I  signified  to  the  governor  my  intention 
of  making,  has  been  delayed,  owing  to  my  necessary  absence 
from  home,  and  from  my  being  unable  to  give  it  my  time  and 
attention.  I  shall  proceed  to  make  it  in  a  short  time,  but  had 
not  supposed  it  could  be  of  value  to  your  committee,  except 
perhaps  as  a  statement  for  enquiry  and  reference. 
I  am,  very  respectfully, 

Your  obedient  servant, 

CHAS.  F.  FISHER,  Pres. 

Messrs.  Jonathan  Worth, 

and  other  gentlemen  of  Committee. 
3 


84  Document  No.  71.  [Session 

(No.  4.) 
New-Berne,  JST:  C.,  January  11th,  1859. 

Jonathan  Worth,  Esq.,  Chairman  of  Committee,  &c : 

Dear  Sir:— I  am  in  receipt  of  your  communication  of  the 
6th  inst,  and  in  answer  would  state  that  the  settlement  with 
Messrs.  John  C.  McRae  &  Co.,  as  contractors  on  the  North- 
Carolina  Railroad,  was  made  by  a  committee  of  the  board  of 
directors  in  accordance  with  an  order  of  the  board  of  direc- 
tors, as  I  was  informed  at  the  time. 

In  consequence  of  this  order,  the  chief  engineer  had  noth- 
ing to  do  with  the  settlement  that  I  am  aware  of,  and  the  only 
connection  I  had  with  it  was  at  the  request  of  the  president 
to  assist  in  making  out  some  statements  relative  to  the  account, 
and  to  appear  before  the  committee  and  answer  such  ques- 
tions as  was  asked,  none  of  which  referred  to  the  execution 
of  the  work.  Yours  very  respectfully, 

JAMES  MILLER. 


(No.  5.) 

Charleston,  S.  C,  Jan.  12,  1859. 

Dear  Sir  : — I  am  in  receipt  of  your  communication  of  the 
5th  instant.  In  reply,  I  have  only  to  say  that  I  disapprove  of 
much  of  the  work  done  by  Messrs.  John  C.  MeRae  &  Co.,  on 
the  North  Carolina  Rail  Road.  The  masonry  for  the  bridge 
oven*  the  Neuse  and  the  culverts,  were  badly  built.  The  cul- 
vert, which  gave  way  and  caused  the  accident,  resulting  in 
the  death  of  Mr.  Holland,  the  conductor  of  the  freight  train, 
received  my  particular  condemnation  ;  and  through  Mr.  James 
Miller,  the  principal  assistant  engineer,  it  was  directed  to  be 
rebuilt.     The  track  was  generally  badly  laid. 

From  the  beginning  to  the  completion  of  the  track,  there 
was  a  constant  strife  between  the  engineer  and  the  contract- 


1 858-9. ]  Document  No.  71.  35 

ors ;  they  repeatedly  refused  to  obey  the  orders  of  the  engi- 
neer, and  it  was  with  the  greatest  difficulty  that  I  could  get 
them  to  do  any  portion  of  the  work  properly. 

I  have  no  recollection  of  making  any  written  report  to  the 
board  of  directors  in  regard  to  the  misconduct  of  Messrs. 
John  0.  McRae  &  Co.,  but  I  frequently  apprised  the  board  of 
the  trouble  and  difficulty  which  they  gave  me ;  their  beha- 
vior was  such  that  I  broke  off  all  personal  intercourse  with 
them,  and  communicated  my  instructions  to  them  in  writing. 

I  have  no  recollection  that  I  was  consulted  by  the  commit- 
tee of  the  board  appointed  to  settle  the  accounts  of  Messrs. 
John  C.  McRae  &  Co.  The  account  between  the  company 
and  their  contractors,  was  so  frequently  referred  to  in  connec- 
tion with  communications  to  the  board,  from  them,  that  I 
have  no  doubt  every  member  of  the  board  was  furnished  with 
its  details. 

The  committee  for  the  settlement  of  the  account  of  Messrs. 
John  C.  McRae  &  Co.,  was  appointed  without  any  consulta- 
tion with  me.  I  made  no  complaint,  nor  did  I  make  any  in- 
quiry as  to  the  motive  for  taking  the  settlement  out  of  my 
hands ;  I  inferred  it  was  done  at  the  solicitation  of  the  con- 
tractors, and  probably  with  the  view  of  relieving  me  of  a  po- 
sition, in  which  my  motives  might  be  assailed,  as  I  had  n® 
personal  intercourse  with  the  contractors. 
I  am  sir,  yours  very  respectfully, 

WALTER  GWYNN. 
Hon.  Jonathan  Worth,  Chairman,  &c. 


36 


Document  No.  71. 

(No.  6.) 

WOOD  CONTRACTS. 


[Session 


1 

NUMBER 

■* 

DATE  OF  CONTRACT. 

CONTRACTOR.                  ! 

OF  CORDS. 

DELIVERABLE. 

Feb.  20,  1853, 

Charles  L.  Partee, ) 
Benjamin  Sumner,  j 

1,500 

Aug.Nov.Feb. 

May    1,  1855, 

1,000 

&  May,  1857. 

Feb.    1,  1856, 

Jos.  M.  Smith, 

52i 

Feb.     1,      " 

Jan.     7,  1856, 

N.  M.  Yinson, 

1,500 

Jan.     1,       " 

Dec.  22,  1855, 

Wm.  Carpenter, 

60 

June    1,  1856. 

"       1}     u 

Samuel  Chapell, 

200 

Mar.  30,       " 

Jan.  25,  1856, 

N.  G.  Gully, 

100 

Jan.  25,  1857, 

Dec.    7,  1855, 

H.  Pilkinton, 

200 

"      1,  1856, 

Jan.     1,  1856, 

Jo.  Ingram, 

800 

"      1,  1857, 

"     24,      " 

John  R.  Johnson, 

300 

tt       j           a 

Mar.    1,     " 

Jo.  Ingram, 

800 

((       ^           " 

«      1       « 

W.  Hasting, 

800 

a      ^        " 

Jan.     1,     " 

W.  H.  Whitley, 

1,000 

«         "J.             u 

»       4,     " 

Dosia  Allen, 

2,500 

Feb     l'       " 

"       8,     " 

Thomas  J.  Faucett, 

400 

Jan.     1,       " 

Dec.    4,  1855, 

Isaac  W.  Jones, 

100 

"      1,  1856, 

Jan.  15,  1856, 

A.  F.  Page, 

1,200 

."      1,  1857, 

Feb.  19,      " 

James  M.  Smith, 

1,500 

Feb.  19,       " 

Jan.  24,     " 

J.  M.  Scales,  Jr., 

12,000 

Jan.     1,       " 

Feb.     1,      " 

W.  H.  McCullers, 

2,000 

Feb.    1,       " 

Jan.  10,      " 

Eatman  &  Richardson, 

1,000 

Jan.     1,      " 

"    17,     " 

Price  &  Wilder, 
Wm.  R.  Daniel, 

600 

"    17,       " 

¥     21, 

300 

K      2        " 

Feb.    8,     "' 

J.  H.  Johnson, 

2,000 

Feb.    l'       " 

Nov.  30,  1855, 

W.  S.  King, 

100 

April  1,   1856, 

Jan.     5,  1856, 

j".  R.  Brannan, 

12,000 

Jan.  15,   1857, 

«     24,  1855, 

Willis  Johnson, 

150 

it      2         " 

»       5,  1856, 

Nathaniel  Jones, 

1,200 

Dec.  25,  1856, 

»       5,      " 

Isaac  V.-  Jones, 

800 

Jan.     5,  1557, 

«       fi,      " 

W.  H.  To;ulinson, 

800 

"     10,       " 

"     22,      " 

Alsey  Eatman, 

350 

u         2           " 

w     23,     « 

F.  T.  Tomlinson, 

1,600 

"     23,'       " 

Mar.  11,     " 

P,  A.  Page, 

800 

U            -i               it 

Jan.  17, 

J.  0,  Atkinson, 

400 

u   j^!     « 

«     15,     " 

A.  Morgan, 

100 

May    1,  1856, 

"     19,     « 

John  W.  Brasington, 

1,000 

Jan.     1,  1857, 

«     21,     •'•' 

&  fj,  W,  mightoT, 

300 

u        i          a 

1858'-'9/}  Document  No.  71. 

WOOD  CONTRACT -(Continued.) 


37 


DATE  OF  CONTRACT 


Jan.  4,  1856, 

"  18,      " 

"  16,      " 

"  21,      " 

"  15,      « 


CONTRACTOR. 


C.  D.  Edwards, 
Wiley  Manor,- 
G.  J.  Allison, 
W.  D.  Carlton, 
A.  M.  Blake, 


Generally  at  $1.25  per  cord. 


NUMBER 
OF  CORDS. 


100 

200 
200 
300 

2,000 

43,512£ 


DELIVERABLE. 


May    1,  1856, 
June    1,       " 
July    1,       " 
Jan.     1,  1857, 
"     15,       " 


(No.  7.) 

December  21st,  1858. 

Dudley  &  Ashley's  work  on  Superintendent's  House : 


3692  feet  of  flooring,  $1, 

$147  68 

3693     " 

of  framing  in  floors,  $2, 

73  84 

2560     " 

"     ceiling  joist,  $2, 

5120 

2560     " 

"     roof,  2, 

51  20 

2560     " 

"     sheeting  and  shingling,  $3^, 

89  60 

1690     « 

"     partitions,  $2, 

33  80 

220     " 

cornice,  $1.10,  and  brackets, 

242  00 

205     " 

frieze,       25  cts., 

5125 

220     " 

gutter,       15  cts., 

33  75 

10  windows  in  first  story,  $14, 

140  00 

13 

'            second  "    $12, 

156  00 

8  dooi 

•s  in  1st  story  brick  wall,  $12^, 

98  00 

5     " 

1st     "      wood  wall  $11, 

55  00 

1  front  door, 

25  00 

4  door 

s  in  2nd  story  brick  wall,  $12, 

48  00 

4     " 

"  2nd  wood  wall,  $11, 

44  00 

2  staii 

cases,  70  and  50, 

120  00 

8  chimney  pieces  at  $5, 

40  00 

38                               Document  No.  71.  [Session 

90  feet  of  raking  cornice,  $  108  00 

4  pair  steps,  and  3  verandas,  390  00 

882  feet  vase,  15  cents,  132  30 

Fitting  and  hanging  23  window  blinds,  23  00 


$2,153  62 


Approved,  credit  their  account. 

C.  F.  F. 

Estimate  on  December  20,  1858 : 

Dudley  &  Ashley's  work  on  Captain  Allen's  House  : 

3415  feet  of  flooring  at  $4,  $136  60 

8863     "    ""framing  "     $2,  174  26 

2268     "    "  sheeting  "     $4,  90  72 

192     "    "  cornice  and  frieze  at  $1,  192  00 

180     "    "  gutter  15  ce'nti,  27  00 

8  windows  in  first  story  $14,  112  00 

10        "        "  second  "  $12,  120  00 

5  doors  inside  in  first  story  $12,  60  00 

2  "      outside   "        "    "  $25,124,  37  00 

3  closets             "  first       "  $12,  .                      36  00 

4  doors  "  second  "  $12,  48  00 
8  closets  "  "  "  $10,  80  00 
8  chimney  pieces,  5,  40  00 

724  feet  base  15  eta.,  108  60 

1  closet  under  stairs,  10  00 

17  feet  blinds  for  fitting  and  hanging,  17  00 

1  pair  steps,  front  door,  2  00 


KITCHEN- HOUSE  : 

3360  feet  framing  $1£,  $50  90 

1000     "    weather  boarding,  $2,  20  00 

840     "    shingling,  $2£,  2100 

640     "    flooring,  $2£,  16  00 

4  windows,  12  lights,  10x16  glass,  18  00 


,291 18 


3  00 

6  50 

15  00 

$176.40 

$59  80 

30  00 

90  00 

7  00 

50  00 

1858-9.]  Document  No.  71.  39 

4  doors,  of  4  pannels,  $6£,  $26  00 

2  chimney  pieces,  $1£, 
130  feet  base,  5  cents, 
60  boxing  and  cornice,  25  cents, 

Kitchen  porch, 

Back  porch  to  house, 

Front  porch, 

Changing  window  to  a  door, 

Stair  case, 

$170438 
Approved — credit  their  account,       C.  F.  F. 

December  21st,  1858. 

Estimate   on   Dudley   &  Ashley's    work    on    Hotel — Front 
Building  : 

6640  feet  of  framing  in  1st  and  2nd  story,  $2,  $132  80 

6768     "     ceiling  joist,  $2,  135  36 

6600     "         "     roof  2,  132  00 

3228     "     partition  in  1st  story,  $2,  64  56 

3854     "            "        2nd      "      $2,  77  08 

1280     "         basement,  2  cents,  25  60 

192     "         stair  wall,  2  cents,  3  84 

1512     "         support  for  roof,  2  cents,  30  24 

6573     "         flooring  in  1st  and  2nd  story,  4  cts.,  262  92 

4  windows  that  reach  the  floor,  $11,  44  00 

7         "                                          $11,  77  00 

2  front  doors                                $13,  26  00 

2  doors  outside  with  side  and  head  lights,  $25,  50  00 

1  "     side  lights,  18  00 
11       "     inside  with  head  lights,  $12,  132  00 

2  doors  without  head  lights,  $11,  23  00 
1  sliding  door,  50  00 

10  chimney  pieces  in  1st  story,  $6,  60  00 

1  stair  case,  120  00 


40  Document  No.  71.  [Session 

2  £  eliptic  openings  $7-|, 
809  feet  of  vase  in  1st  story  15  cts., 

6  windows  in  2nd  story  reaches  the  floor, 

7  "  2nd         "         "  " 
10  doors  in  2nd  story  with  head  lights, 

5      "  "      «         without, 

2  "  "      "     with  side  and  head  lights, 
1  window  frame, 

door         " 

1  window  frame  to  basement, 
807  feet  of  base  in  2nd  story,  10  cts., 

10  chimney  pieces  in  2nd  story,  $6, 
178  feet  of  balcony, 

7  windows  in  basement,  $6, 

3  doors  "         $10, 
398  feet  of  arch  itrane,     174/  cts., 

80     "■     bannistering  and  railing  in  front  porch,  $1, 
576     "     front  steps, 

2  buttresses,  $10, 

2  pair  steps  of  7  treads  each,  $4, 

wing  of  hotel: 
480  feet  of  framing  in  basement,  $2, 
11874  "  wing,  $2, 

2483  "  " " 

14  windows  in  2nd  story,  $10, 
10         "         1st  "     $10, 

10         "         2nd  "     $11, 

1  a         2nd  "  outside, 

3  "         1st  "      '   "     $12, 

2  i;         1st  "     iuside,  $11, 
12  chimney  pieces  at  $5, 

960  feet  base  $10, 

8  windows  in  basement,  $6, 

3  "  "        2  of  them  ontside,  $12, 
1  stair  in  basement,  &c, 

For  shelving,  $c,  in  dining  pantry, 
3710  feet  flooring  in  1st  and  2nd  stories,  $4, 
3  quarter  round  post,  $!•£, 


$15 

00 

121 

35 

G6 

00 

77 

00 

120 

00 

55 

00 

50  00 

4 

00 

5 

00 

2 

50 

80  70 

60 

00 

250 

00 

42 

00 

30  00 

69 

65 

80  00 

110 

00 

20  00 

8 

00 

9 

60 

237  48 

75 

06 

140 

00 

100  00 

110 

00 

12 

00 

36 

00 

22 

00 

60  00 

96 

00 

48 

00 

36 

00 

25 

00 

25 

00 

148 

40 

4 

50 

1858-'9.]  Document  No.  71.  41 

back  porch  : 
2805  feet  of  framing,  $2, 

935     "     sheeting  and  shingling, 
1870     "     flooring, 
102     "     boxing  and  cornice,  50  cents, 
294     "     railing  and  bannisters,  50  cents, 
IS  columns  and  caps,  &c,  $4, 
1  stair  case, 

1  pair  steps  of  15  treads  and  rises,  &c, 
1  pair  steps,  two  treads, 
925  feet  ceiling,  $2 

1  door  under  stairs, 
294  feet  of  faice  and  moulding,  10  cents, 
0740     "     of  sheeting  and  shingling  in  front  house,  2-J  168  50 
2257     "  "  "  in  wing,  2| 

100  "  hip  shingling,  20 
62  "  valley  "  '  20 
99     "     cornice  in  wing,  Iracketted,  24; 

101  "         "  "      plain,  1 
424     "     of  gutters,                                20 

BACK     PORCH  : 

2387     "     of  flooring, 
2387     "     framing, 
18  columns  and  caps, 

243  feet  of  bracketted  cornice,  24; 

224     "     soffit, 
1302     "     framing,  2 

2452     "     extra  framing  in  wing  roof, 

Approved,  credit  their  account. 

C.  F.  F. 


$56  10 

23  37 

74  80 

51  00 

147  00 

72  00 

25  00 

25  00 

100 

18  50 

5  00 

20  40 

168  50 

56  42 

38  00 

12  40 

222  75 

101  00 

84  80 

95  48 

47  74 

780  00 

546  75 

44  84 

30  04 

48  04 

$6,711  OS 


42                                 Document  No.  71.  [Session 

Estimate   Dudley    and  Ashley — work  done  at   Company*  $ 
Shops : 

Furnishing  and  laying  308,092  brick,  $3,080  92 

Carpenter's  work  as  per  bill,  1,934  32 


Total  amount  store  house,  $5,015  22 

60,580   brick  in  one   small  house,   and 

foundation  in  second,  $605  80 

Carpenter's  work   on  8   small  houses  as 

per  contract,  3,520  00 

Total  of  small  houses,  4,125  80 

150,275  brick  in  M  of  M  house  at  $10,        $1,502  75 
Carpenter's  bill  as  per  contract,  1,400  00 


Total  amount  of  M  of  M  house,  2,902  75 

Work  done  by  the  da3r  up  to  the    1st  of 

June,  1856,  $1,459  90 

Work  clone  by  the  day  up  to  close  of  1 856,         4,555  33 
Work  done  on  temporary  dwellings,  41  40 


Total  by  the  day,  6,056  63 

Account  rendered  for  smoke  house,  20  00 
22,790  brick  in  chimneys  to  wood 

buildings,  227  90 


$18,348  30 


Credit  account. 

C.  F.  F. 


1858-'9.]  Document  No.  71.  43 

(No.  8.) 

Raleigh,  January  20,  1859. 
Mr.  Jonathan  Worth,  Chairman,  &c : 

Dear  Sir  :  Yours  of  19th  inst.  is  before  me.  Mr.  McNight 
spoke  to  Mr.  Mebane  and  myself  about  doing  the  brick-work 
of  the  boarding  house,  and  wished  to  see  the  plan  and  know 
whether  he  would  have  the  job,  &c.  At  a  time  of  a  meeting 
of  the  Board  of  Directors  of  the  N.  C.  Railroad,  Mr.  Mebane 
and  myself  went  to  the  office,  and  informed  the  President  of 
the  fact  that  Mr.  McNight  had  spoken  to  us,  and  we  wished 
to  see  the  plans  and  give  him  some  answer.  In  reply,  the 
President  merely  stated  that  whenever  Mr.  McNight  wished 
to  see  the  plan,  he  might  call  on  him  (the  President),  and  get 
what  information  he  desired,  and  more  in  his  manner  than  in 
his  word,  let  us  feel  that  that  was  his  business,  and  that  he 
did  not  wish  any  interference.  The  interview  was  short,  and 
Mr.  Mebane  and  myself  determined  to  have  no  more  to  do 
with  the  building  of  the  boarding  house.  I  have  never  been 
consulted  about  it,  andean  give  you  no  infoimation  more 
than  you  can  derive  from  books,  contracts,  estimates,  &c,  on 
file  in  the  office. 

Respectfully, 

F.  FRIES. 


44 


Dr. 


Document  No.  71 


[Session 
(No. 
North-Carolina    Company, 


1855. 

Dec'r  31, 

1856. 
April  29, 
May  5, 
June  30, 
Aug't  30, 
Oct'r  20, 
Nov'r   7, 

a         a 

1857. 
Jan'y  10, 
March  5, 
18, 


May 


21, 

18, 


22, 
10, 


July 
Oct'r 
Nov'r  21, 
1858. 
Jan'y  7, 
"  30, 
May  3t, 
July  15, 
Nofr  26, 
Dec'r  25, 


o    Cash, 
do., 


do.,  

do.,  

do.,  

do.,  

do.,  

do.,  

Paid  McCalla,  per  order, 


Cash,    

do.,   

Paid  Judge  Puffin, 
Cash,    , 

do.,   

Paid  Holt,  Mury  &  Co., 
Cash,    

do.,   

do.,   , 


do.,   

do.,   

do.,   

do.,   

do.,   

do.,  account  shops, 

Bill  lumber  sold,   


To  balance, 


70000 
1,00000 

340:00 


300 
200 
200 
200 
300 
63 

500 

1,000 

107 

500 

500 

4 

800 

1,000 

410 

500 

1,500 

800 

1,000 

500 

5 

42 


12,473 

3,477 

$    16,550 


00 
00 
00 
00 
00 
33 

00 
00 
50 
00 
00 
59 
00 
00 
00 

00 
00 
00 
00 
00 
50 
75 


67 
11 

78 


185S-'9.]  Document  No.  71. 

3.) 

m  aceoimt  with  James  G.  Moore. 


45 


Cr. 


1855. 

Nov. 

1856. 
Jan'y    1, 
May      3, 
June  30, 

1858. 
Dec'r    1, 


1859. 
Jan'y    1, 


By  estimate  of  work  at  shops,   . . . 

"        do.,   Sills,     

"        do.,  Work  at  shops,   

"        do.         do.        do.,   

"  do.        do.,  in  1856-7,   . . . 

"  do.        do.,  1st  Sept'r  1856, 

"  do.,  Screws  and  Locks,   . . . 

"        do.,  at  shops  in  1856, 

"  do.,  account  for  wells  in  '56, 

"        do.,  Glass,  

"         do.,  work  at  shops, 

u        do.,  table  furniture,   

"  do.,  cleaning  wells  in  1856-'7 

"  do.,  work  at  shops  6  mo's  '57, 

"  do.        do.        do.        do. 

"  do.,  account  for  board,  . 

"  do.,  for  yard  hands,  6  mo's, 

"  do.        do.        do.        do., 

"  do.,  for  board  1856-'7,   . . 


By  balance  brought  down, 


78 


$     3,477 


11 


46 


Document  No.  71. 


(No.  10.) 


[Session 


North-  Carolina  Railroad  Company  in  account  with  Jas.  G. 
Moore,  from  January  1st  to  June  30th,  1857  : 


To  150  days 

work 

by  W.  B.  Adams 

$1.00            ! 

£150  00 

"     32 

U 

Jacob  Summers,       1.00 

32  00 

"  155 

a 

Tilla, 

50 

77  50 

"     35| 

a 

W.  Stagg, 

1.00 

35  75 

"     32 

a 

Alfred, 

1.00 

32  00 

"133 

a 

Sandy, 

1.00 

133  00 

"    77i 

« 

Carter, 

1.00 

77  25 

"  153 

a 

Greene, 

1.00 

153  00 

"  109 

« 

W.  Lackey, 

1.00 

109  00 

"     94 

u 

T.  Bevans, 

1.00 

94  00 

"     40^ 

a 

J.  Bevans, 

1.00 

40  50 

"  1291 

a 

Spencer, 

1.00 

129  25 

11  150| 

a 

Hauling,  own  wagon, 

376  87 

"     22 

a 

Different  men 
and  then,) 

(a  day  now 

22  00 

»      7 

u 

Hauling  by  G. 

Andrews, 

17  50 

"       3£ 

a 

W.  A.  Kilpatrick  2  horses, 

8  75 

"     10 

a 

K 

4        " 

50  00 

"      7 

u 

« 

3        " 

21  00 

"      2 

C( 

W.  Steele, 

2        " 

5  00 

"    70| 

a 

W.  H.  Moore, 

2         " 

176  87 

"      7 

it 

« 

4         " 

35  00 

"      1 

u 

C( 

3        " 

3  00 

"    47* 

a 

Stagg,  dump  cart, 

71  25 

"    1H 

a 

Jacob  Adams, 

> 

11  50 

"     41 

a 

J.  Weaver, 

41  50 

"     10 

a 

Two  (2)  horse 

plough, 

25  00 

a           l 
*2 

a 

One  (1)            ' 

t 

62 

"     38i 

a 

J.  Fruitt, 

50 

19  25 

"       6 

Months  for  self 

234  00 

"     28^ 

u 

Strayhorn,    Grosston    and 

others,  time  on 

time  book, 

28  50 

$2,210  86 

Credit  his 

accout 

— charge  shops  constructor. 

C.  F.  ¥.,  Pres. 

lS5S-'9.]  Document  No.  71.  47 

Account  for  June,  1857 : 
To     Furnishing  timber,  making  and  delivering  at 

wood  shed  25,500  of  2  ft.  shaved  boards,  $178  50 

"     2  pair  pants  for  Nat,  hire  by  Co.  of  Dr.  P.  A. 

Holt,  3  00 

"     2  shirts  1.50, 1  pair  shoes  from  Worth  1.80,  3  30 

"     Cash  piad  for  taking  up  thump  out  of  founda- 
tion, 9  1  00 
"     Getting  and  delivering  30  large  rock  for  wood 

shed,  10  00 

"     37  pieces  timber  8  +  8, 18  feet  long  for  engine 

shed,  40  14  80 

"     Getting  25  10  feet  sills,  30  7  50 

"     4  candles  from  Worth  to  salt  pork,  24 

1858 
To     1  keg  white  lead  from  McRae's,  order  of  C. 

F.  F.,  3  00 

"     Cash  paid  negroes  for  watching  plank,  3  00 

"  "     P.  E.  Harden  for  plaster  for  foundry,  2  00 

#226  34 
Credit  his  account. 

C.  F.  F..  Pres. 

Account  fob  October  : 

To    1504;  days  work  by  men,  $150  25 

27  "  "  Cook,  13  50 

27  "               Sup.    self,  40  50 

30  "               "With  two  horse  wagons,  75  00 

6  "              Dump  cart,  9  00 

10  "               Topping  trees,  15  00 

9  "               Hewing  timber,  13  5o 

Account  for  November  : 

To    179  days  work  by  men,  $179  00 

"25  "  Cook,  12  50 


48  Document  No.  71.  [Session 

"      40^  days  work,  Two  horse  wagons,  $100  62 

"       13£        "  Hewing  timber,  20  25 

■«      25         "  Sup.  Self,  37  50 

Account  fok  December  : 
To    256f  days  work  by  men,  $256  75 

7  50 
10  50 
40  50 
80  00 
10  50 
10  00 

8  62 


u 

5 

a 

hewing  posts, 

(( 

21 

cc 

by    Cook, 

a 

27 

« 

by  self,  super., 

a 

32 

cc 

by  two-horse  wagoD, 

a 

3 

it 

by  three       " 

« 

2 

a 

by  four         " 

a 

5f 

a 

by  dump  cart, 

Credit  his  account — charge  shops  construction. 


$2,208  11 


C.  F.  F.,  Pres. 

Account  fok  July  : 

To  134|  days  work,  by  men,                                        $  134  75 

"     27      "         "        "  Cook,  13  50 

"       24    "         "        "  Hauling  with  2  horse  wagon,  66  25 

»     27      "                      Supr.  for  self,  40  50 

«     20      "         "        "  Boys,  15  00 

"      3£    "        "        "  With  Dump  Cart,  5  25 

"      2      "        "        "  One  horse  wagon,  3  00 


Account  fok  August  : 

To  172£  days  work  by  men,  $172  25 

«    26      "        "      "   Cook,  13  00 

«     26      "        "           Supr.  for* self,  39  00 

«     45      "        "           With  two  horse  wagon,  112  50 

«     43f    "        "           With  Dump  Cart,  "  65  62 

"       5£    "        "           One  horse  wagon,  8  25 

«     17      "        "           Topping  trees,  25  50 


199  75 

13  00 

8125 

39  00 

45  00 

24  75 

185S-'9.]  Document,  No.  71.  49 

Account  fok  September  : 
To  199f  days  work  by  men, 
26       "        "      "   Cook, 
32£     "        "  Two  horse  wagons, 

26       "        "  Supr.  for  self, 

30      "        "  Dump.  Cart, 

16£    "        "  Topping  trees, 

$1,117 12 

From  1856  to  December,  1858: 
To  furnishing  material,  digging  and  walling  10 
feet  diameter,  well  timber  taken  out  and    22 
feet  head  water  given,  52£  feet  deep,  at  $22,    $1,155  00 
To   furnishing  material   and   digging  well   on 

Robert's  Lot,  75  00 

To  furnishing  material  and  digging  well  on  Board- 
ing house  Lot,  75  00 
To  furnisning  "  "  "  Capt.  Allen's  Lot,  75  00 
To  «  "  "  "  Supt.  house  "  .75  00 
To  "  "  "  "  Hotel  Lot,  75  00 
To  furnishing  rock,  lime,  sand  and  labor,  build 

44f  yards  rock  under  tank,  111  25 

To  cash  paid  G.  Andrews,  for  digging  1,432  feet 

ditch,  2£  feet,  .    35  77 

To  cash  paid  W.  A.  Kirkpatrick,  for  four  large 

stone  for  foundry,  1  00 

To  cash  paid  for  18  scrub-brooms  for  shops,  2  70 

To  furnishing  material  and  digging  7  feet  square 
well,  and  taking  out  all  timber,  22  feet  head 
water,  $7  per  foot,  322  00 


$  2,002  72 
Credit  his  account.  C.  F.  F.,  Preit. 

4 


50 


Document  No.  71. 
(No.  11.) 


[Session 


Indebtedness  of  Agents  on  Worth-  Carolina  Railroad  at  the  end 
of  the  month  of  December^  1858 : 


Charlotte, 

Harrisburg, 

Concord, 

Salisbury, 

Holtsburg, 

Lexington, 

Thomasville 

High  Point, 

Jamestown, 

Greensboro' 

McLean's, 

Gibsonville, 

Co's.  Shops, 

Graham, 

Haw  River, 

Mebanes', 

Hillsboro', 

Durham's 

Morrisville, 

Raleigh, 
cc 

Stallings', 
Smithfield, 
Boon  Hill, 
Carey's  P.O. 
Golds!  >oro', 


A.  W.  Welch,  Agt. 
Wm.  Johnston,  " 
Jno.  C.  Young,  " 
Jno.  A.  Weirman,  " 
Steph.  Roberts,  " 
W".  B.  Dnsenbury, " 
L.  L.  Thomas,         " 

A.  V.  Sullivan,  " 
W.  H.  Reece,  " 
J.  B.  Balsley,  " 
Jas.  M.  McLean,  " 
G.  M.  Isely,  " 
D.  M.  Worth,  " 
James  S.  Scott,      " 

B.  Y.  McAden,  " 
S.  A.  White,  " 
J.  D.  Cameron,     " 

F.  A.  Stagg,  " 

C.  P.  Wilder,         " 

G.  D.  Hardie,  Frt.  " 
J.  T.  West,  Tic't.  " 
L.  P.  Phillips, 
H.  Millander,  " 
Wiley  Hastings,  " 
A.  F.  Page,  '  " 
J.  B.  Griswold,      " 

Balance  due  from  Agents  now  out 

of  office : 
Smithfield,  R.  Fulghum, 
Goldsboro',  W.  H.  Woodard, 
Haw    River,  R.  W.   Hamlet,  (no 

bond,) 


DATE   OF 
BONDS. 


PENAL 
TV. 


May  15,  '58 
Jan.  1,  '59 
Apr.  11,  '56 
May,  1858, 

no  bond. 

no  bond. 
Sept.  1,  '57 
Sept.  1,  '57 
Sept.  1,  '57 
Apr.  29,  '56 
Oct.  14,  '57 
Jim.  17,  '58 
Sept.  1,  '57 
Sept.  1,  '57 

Jan.  1859. 
May  31, '58 
Sept.  1,  '57 
Apr.  21, '56 
Oct.  6,  '57 
Aug.  1858, 
May  1858 
Jury  1857, 
Aug.  2,  '56 
Apr.  17,  '55 

no  bond. 
Oct.  23,  '58 


$3,000 

1,000 
2,000 
3,000 


2,000 
3,000 
1,000 
2,000 
1,000 
1,000 
3,00v 
2,000 
1,000 
1,000 
3,000 
1.000 
1,000 
2,000 
3,000 
1,000 
1,000 
300 

3,000 


300 
3.000 


AMOUNT 
DUE. 


2,029.24 

37.53 

293.68 

7,044.93 

320.19 

37.49 

180.61 

560.34 

000.00 

462.42 

60.77 

07 

00 

122.70 

51.18 

523.36 

241.68 

00 

275.70 

1,697.06 

5,023.56 

814.40 

750.50 

282.55 

112.72 

2,601.18 


1,018.19 

5,279.62: 

825.80* 


lS5S-'9.] 


Document  No.  71. 


51 


(No.  12.) 

TABULAR  STATEMENT 

Showing  names  of  Directors  each  year — distinguishing  thoss 
appointed  by  the  stockholders  and  the  State — with  number  of 
shares  of  stock  owned  by  each  at  the  time  of  his  appoint- 
ment^ and  amount  received  by  each  one  since  the  road  was 

Jinu-hed,  so  that  he  could  travel  free  and  expeditiously  to  the 

place  of  meeting : 


1850. 

NO. 

1852. 

SIIAHES 

40 

SHARES 

'Win.  C.  Means, 

'  Means, 

40 

Jno.  I.  Shaver, 

106 

Ellis, 

6 

OD 

Jno.  B.  Lord, 

106 

CO 

Davis, 

20' 

M 

w 

F.  Fries, 

80 

T.  J.  WilsOn,  (Salem Co.) 

245. 

p 

J.  W.  Thomas, 

81 

P 

Thomas, 

81 

W    j 

J.  M.  Morehead, 

180 

C 

Morehead, 

180- 

3  ■ 

Jno.  A.  Gilmer, 

81 

o 

Jones, 

40 

o 

Benj.  Trolfnger, 

20 

o 

Holt, 

20 

CD 

Wm.  A.  Graham, 

40 

03 

Saunders, 

80 

P"1 

It.  M.  Saunders, 

80 

Jerkins, 

116 

A.  J.  DeRossett, 

150 

Hill, 

50 

» 

L  iY.  T.  Jerkins, 

116 

Gilmer, 

81 

1,0S0 

959 

1851. 

1853. 

f  W.  C.  Means, 

40 

r  W.  H.  Washington 

20 

Jno.  W.  Ellis, 

6 

W.  T.  Dortch, 

00 

03 

D.  A.  Davis, 

20 

a 

Samuel  Hargrave, 

20 

F.  Fries, 

SO 

Robert  Strange, 

00 

P 

J.  W.  Thomas, 

81 

S.  F.  Phillips, 

,5 

o 

J.  M.  Morehead, 

ISO 

!* 

n 

N.  G.  Rand, 

2 

Jno.  A.  Gilmer, 

81 

R.  P.  Dick, 

5 

H 

Cad.  J< tries, 

40 

,  C.  F.  Fisher, 

10 

<J2 

E  M  Holt 

20 

so 

pq 

i  ..  •    j.  *..  •    i  i    '  ii , 

R.  M.  Saunders, 

62 

F.  J.  Hill, 

50 

A.  T.  Jerkins, 

116 

k> 

f  Fries, 

80 

Hill, 
Davis, 

50 
20 

794 

1^ 

Morehead, 

180 

330 

52  Document  No.  71.  [Session 

TABULAR  STATEMENT.— [Continued. j 


1854. 

NO. 

SHAKES 

1855. 

NO. 

SHAKES 

f  Fisher, 

10 

P.  C.  Cameron, 

33 

Strange, 

1 

Giles  Mebane, 

48 

IT 

Rand, 

2 

13 

Bellamy, 

5 

< 

H   - 

00 

Dick, 

5 

< 

CO 

Dortch, 

20 

Jno.  Berry, 

0 

Hawkins, 

92 

G.  S.  Stevenson, 

0 

lh 

Shaver, 

314 

Hargrave, 

20 

Dick, 

12 

[  Dortch, 

20 

Hargrave, 

20 

58 

544 

M  f  Fries, 

114 

M 

f  Fisher, 

10 

|  1  0.  Phifer, 

23 

o 

o 

Fries, 

114 

m  ]  Saunders, 

50 

Saunders, 

20 

£   [Morehead, 

88 

[A.  Hcllae  &  Co., 

885 

275 

1,029 

1856 

NO. 

AMOUNT 

Ino.days 

SHARES 

RECEIVED. 

SERVICE. 

pick, 

12 

$       84  40 

8 

Mebane, 

48 

64  90 

8 

i 

Cameron, 

38 

40  90 

7 

Hawkins, 

92 

112  00 

8 

m   '  Shaver, 

314 

118  40 

7 

Hargrave, 

20 

105  00 

8 

Bellamy, 

5 

129  80 

6 

Dortch, 

20 

86  60 

5 

549 

W  ["Fisher, 

108 

o  j  Fries, 

114  i 

110  00 

8 

S  i  Saunders, 

20  | 

74  40 

4 

tMcRae&Co., 

885  j 

78  40 

2 

1858-'9.] 


Document  No.  71. 


53 


TABULAR  STATEMENT.— [Continued.] 


iss; 


< 


Cameron, 

Mebane, 

Bellamy, 

Dortcli, 

Hawkins, 

Shaver, 

Dick, 

Hargrave, 


,;   f  Fisher, 
o   I  Saunders, 
h  -I  Fries, 
^    I  Gorrell, 
«   LMcRae, 


1858. 
D.  M.  Barringer. 

Cameron, 
Bellamy, 
Dortcli, 
1  <j  Dick, 

Hargrave, 
Mebane, 
Hawkins, 
.Shaver, 


'Gorrell, 

Saunders, 
i  Fisher, 

Alexander  McRae, 

Fries, 


1,147 


549 


AMOUNT 
RECEIVED. 


61  GO 

39  30 
169  80 
124  00 
110  40 

71  20 

40  00 

41  SO 


73  10 

89  60 

21  00 

180  60 


3^  00 

15  20 

111  20 

m  oo 

31  40 

60  00 

12  00 

40  00 

75  So 


NO.  DAYS 
SERVICE. 


38  40  i 

7 

as  oo  ! 

1 

7 

132  40 

4 

38  40  ! 

4 

II  1,165 

No.  of  days   bv   all,  in    1856—  71 ;  amount  paid— $1,004  80 

"          "  "    "         «        1857—71  ;       "  "          1,028  40 

"            "            "       1858—69;      "  "            726  80 


54 


Document  No.  71. 
(No.  13.) 


[Session 


Western  North- Carolina  Railroad  Company 

In  account  vjith  North-Carolina  Railroad  Company : 

Dr. 


1857. 
June  30, 
Aug.  14, 
Dec'r.  2, 
1858. 
Jan'v  19, 


July  1, 
1, 


Aug-. 

Sept. 


Nov.   26 


Dec.  31, 


To  fre't  at  Salisbury  station, 
"  do.  do. 

«  do.  do. 

"  22  cords  wood, 
"  Transporting    2  engines 
from  Goldsboro'  to  Salis- 
bury, 
"  Ain't  paid  Richardson  for 

S.  J.  Watson, 
"  Transporting  1010   tons 

iron, 
"  L.  S.  Aldrich's  order  on 
J.  C.  Tnrnei-,pcli'f  eng'r, 
"  Transporting'  materials, 
"  Work  at  shops  in  1857, 
"  do.         do.       1858, 

"  Fre't  at  Salisbury  staliou, 
"  do.  do.  in  June, 
"  Paid  Tunstall  &  Dor  on 

joint  passenger  shed, 
"  Transporting  two  (2)  en- 
gines from  Goldsboro'  to 
Salisbury, 
"  Transporting  2  passenger 
cars  from  Goldsboro'    to 
Salisbury, 
"  Freight  at   Salisbury  in 
July, 

Ditto,  Agust, 
Ditto,  September, 
Ditto,  October, 
Ditto,  November, 
"  500  sills  in  April, 
u  Work  at  shops  to  date, 


$  1,S69.41 
201.29 
654.41 

40.00 

90.00 

180.08 

2,626.00 

2,800.00 

3,000.00 

28.37 

406.81 

277.72 

4,251.26 

200.00 

!     90.00 

60.00 

378.69 

505.86 

1,137.98 

481.54 

255.88 

200.00 

1,508.33 

$  21,243.63 

1S5S-9.] 


Document,  ISTo.  71. 
Xo.  13. — [Continued.] 


55 


1857 
Dec.  31, 


Dec.  31, 


"  Back  charges  of  freight 
turned  over  at  Salisbury 
to  date, 


Ci 


By  casli  in  Sept.,  '57  on  ac't.  $    2,000.00 
To  freight  received  at  Salis- 
bury station  to  date, 


Balance  dne  1st  Jan'y,  1S59, 


.$  21,600.81 


UNIVERSITY  OF  N.C.  AT  CHAPEL  HILL 


00023514065 


This  book  may  be  kept  out  one  month  unless  a  recall 
notice  is  sent  to  you.  It  must  be  brought  to  the  North 
Carolina  Collection  (in  Wilson  Library)  for  renewal. 


Form  No.  A-369 


